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8 Theories For Why The Stock Market Plunged Almost 1,000 Points In A Matter Of Minutes
The Business Insider ^ | 5-7-2010 | Michael Snyder

Posted on 05/07/2010 6:05:18 AM PDT by blam

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1 posted on 05/07/2010 6:05:18 AM PDT by blam
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To: blam
Here is the wild ride down thread from yesterday:

Dow Now Down Over 220 As Europe Explodes (now down over 500)

2 posted on 05/07/2010 6:06:52 AM PDT by blam
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To: blam

Someone could have made a LOT of $$ yesterday.


3 posted on 05/07/2010 6:07:31 AM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: blam

Where does Flash trading fall into this?

A bunch of 30millisecond looks at the market in front of the regular schmoes would look like perfect place to stab a blood funnel.


4 posted on 05/07/2010 6:08:18 AM PDT by Malsua
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To: rbg81

I’m sure someone made a bundle yesterday. Probably not an accident.


5 posted on 05/07/2010 6:13:28 AM PDT by subterfuge (BUILD MORE NUCLEAR POWER PLANTS NOW!!!)
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To: blam

and then there’s this:

http://johngaltfla.com/blog3/2010/05/06/fat-finger-bullcrap


6 posted on 05/07/2010 6:13:33 AM PDT by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: blam
Yea like a fat finger caused the housing melt down as well. By the way, who would of had the money to buy the billion shares of Proctor any ways, who could of had the money in a margin account? If I don't have enough my trade is rejected instantly. I'm not buying the excuse.
7 posted on 05/07/2010 6:13:39 AM PDT by reefdiver ("Let His day's be few And another takes His office")
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To: rbg81

With Gold spiking over $32 an ounce, I guarantee you some people made money yesterday. Of course there is a lot of doubt about the real quantities of gold that brokers are holding, along with persistent rumors of Chinese gold bars that have tungsten cores...


8 posted on 05/07/2010 6:14:31 AM PDT by Bean Counter (We hang the petty thieves and appoint the great ones to public office -- Aesop)
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To: blam

There may be eight THEORIES why the market tanked so fast, but there is only one REASON: fear of Obama policies.


9 posted on 05/07/2010 6:15:46 AM PDT by norwaypinesavage (Galileo: In science, the authority of a thousand is not worth the humble reasoning of one individual)
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To: blam
I am not believeing the "Fat finger" bit for one minute. I just don't see how a transaction that large would be permitted to go through with some sort of confirmation.

I'm looking towards a computer program bug or manipulation.

10 posted on 05/07/2010 6:16:05 AM PDT by Drill Thrawl (Another day, another injury, another step closer. Are you prepared?)
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To: blam
I'm surprised.

"George W. Bush's fault" didn't make the list.

11 posted on 05/07/2010 6:18:04 AM PDT by Verginius Rufus
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To: blam

I’ve been a finance professional for nearly 20 yrs.

What happened yesterday was corruption/terrorism/theft. The potential culprits are either politicians, wall street insiders, or foreign terrorists.

The chances of anyone being accountable for this, are basically nil.

Yesterday was frightening, literally bringing on the collapse of the system, but by judging reaction, very few people seem to care.

It will take 3 business days after yesterday before some folks realize how they got screwed by the plot. Yesterday there were some folks that made a killing, and others that got killed. Some don’t even know it yet.

I’m very concerned that many of my clients mutual funds became victims of this scam, and unless a proper investigation was done, nobody will even know about it.

Attorneys related to this, could literally have enough material to work on for the rest of their careers?


12 posted on 05/07/2010 6:19:04 AM PDT by Professional
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To: Drill Thrawl

Why keep money in the stock market?


13 posted on 05/07/2010 6:23:15 AM PDT by Citizen Tom Paine
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To: reefdiver

The rules that apply to you, don’t apply to everyone else. The ability to have made naked buys yesterday was most certainly out there. Now, after the fact, folks could be found guilty of “free riding”, but the criminals that did this, recieve diplomatic immunity in the USA.

I’m literally sick over what happened yesterday, and I just don’t think people realize that this was potentially as devastating financially as anything the world has ever seen. The market should have erased all trades yesterday, and closed today. No way you reopen the markets without knowing exactly who/what/where/why/when this all happened. Unless of course, they DO know, but just aren’t telling us. I find it extremely odd, that the fat finger thing has not identified a person or firm.

As many others have posted, the fat finger excuse is completely laughable, or an indication of what a POS our current trade system is.


14 posted on 05/07/2010 6:24:17 AM PDT by Professional
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To: blam

In retrospect contrary to all the crass spin, there is only ONE reason.......This economy sucks a big one. No other way to put it.


15 posted on 05/07/2010 6:24:55 AM PDT by PSYCHO-FREEP ( Give me Liberty, or give me an M-24A2!)
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To: Citizen Tom Paine
Good question.

Tangible assets would be much better right now.

16 posted on 05/07/2010 6:28:51 AM PDT by Drill Thrawl (Another day, another injury, another step closer. Are you prepared?)
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To: Professional

It doesn’t matter who the enemy is, China, ME terrorists or our own government, killing the economy is one way to win without a bloddy war.


17 posted on 05/07/2010 6:31:07 AM PDT by tiki (True Christians will not deliberately slander or misrepresent others or their beliefs)
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To: All

What was happening on the FOREX between 2:00 PM EST and 3:00 PM EST yesterday ?


18 posted on 05/07/2010 6:32:27 AM PDT by pyx (Rule#1.The LEFT lies.Rule#2.See Rule#1. IF THE LEFT CONTROLS THE LANGUAGE, IT CONTROLS THE ARGUMENT.)
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To: tiki

I find it interesting, that we have yet to see one victim of yesterday screaming bloody murder. Some stocks got to a penny, and there were trades that happened directly related to these lows. Yes, some trades were cancelled, but others were not. The size of potential losses were enough to bring down the biggest financial players in the world.

I’d hope, that there are an army of govt, legal, and law enforcement officials quickly trying to find people that benefited from this event. Follow the money, and you’ll see who’s behind this.

Another event like this, and we could see a huge run on the financial system.


19 posted on 05/07/2010 6:36:37 AM PDT by Professional
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To: pyx
I have no idea.

HFT Algos Are All Everyone's Going To Be Talking About Today

20 posted on 05/07/2010 6:36:39 AM PDT by blam
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