Tag archive for ‘flash crash’

• Return of the Flash Crash

  11 October 10 • Comments Off

  

  It’s only a matter of time, it seems to me, before we experience another flash crash—similar to May 6 when the Dow dropped about 700 points in twenty minutes. Here’s why:

• Financial Reform and the Fungus Five

  20 May 10 • 3 comments

  Recently, I described financial reform as a “petri dish” of pending legislation. The government is tackling too many issues at the same time. Without constants—we don’t know how markets will react to all the moving pieces.

  It gets worse. Last night The Wall Street Journal profiled the back-room deals working their way through pending legislation. I guess you can hide anything in a 1,500 page document. And those legislative walkabouts are what trouble me.

  How can we trust financial reform when approval depends on non-related issues?

  Here are five “amendments” that have nothing to do with sub-prime debt, banking leverage, or even the flash crash of two weeks ago. I’ve dubbed them the “Fungus Five,” because they call into question the Congressional focus on “getting it right.”

• What is High-Frequency Trading?

  12 May 10 • Comments Off

  There’s been so much talk about the “flash crash” and high-frequency trading. Wonder what it is?

  Here’s a great video that explains how high-frequency trading works:

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