Dow Jones "flash crash": 5 theories
His world financial markets reeling after yesterday afternoon's "flash crash" which saw the Dow Jones Industrial Average plunged nearly 15 minutes, 1000 € "erase more than one trillion U.S. dollars of market value," almost as fast as before rebound. It is unclear what caused the collapse of unstable, leaving the stock market fell 348 points the day, and led to the U.S. Securities and Exchange Commission investigation. This is a simple reaction in Europe unrest, typo "or a combination of all the above (see the CBS report on the stock market crash theory.)
Here, five leading theories:
1. Computer failure
Some analysts trace the collapse of Citigroup's computers to perform complex electronic or "high frequency" trading errors that may occur, and may lead to a "huge surge in sales of exception" automated trading systems in Chicago, the New York Times reports. Theoretically, when traders believe this surge, they joined the spree.
2. The world's most expensive typo
Rumors are circulating a false trader may have eliminated billions closed stock type "$ 16 billion," instead of "$ $ 160,000" trade involving Procter & Gamble, the New York Daily News. Seemingly huge sales triggered a huge sell-off the same, in a matter of minutes with multinational companies fell by 37%. Industry insiders say this kind of financial trouble typo "fat finger trade."
3. Greece riots
Lost in the drama of the 1000 point drop, the Dow has fallen 631 points in the past three days, concerns about the crisis in Europe is a fact. Greece riots continued into Thursday, nervous traders รข € "worried launched Europe's debt crisis will spread to the U.S. market" and "may have been on a sales boom.
4. Unscrupulous dealers
U.S. Securities and Exchange Commission is also studying, securities dealer "accidentally or maliciously" caused artificially inflated stock market crash through sales possibilities. Together with the Commodity Futures Trading Commission probe last Thursday afternoon, "unusual transactions."
5. Cyber Terrorism
There may be a network of terrorists "inspired (or not) Times Square bomber" € "trying to undermine U.S. interests, through its stock market?" Rogue states and terrorist organizations have been developed for a long time, and now they "network war" capabilities, said: "Michael Snyder Total." We have repeatedly warned that one day we will see a "Internet 9/11."
These problems can be quickly constructed in 2013 to create another flash crash. Well, time will tell.
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