Tuesday, November 9, 2010

Flash Crash

I was just reading about what they call mini-flash-crashes in the stock market.  Some random action triggers an unexpected response from a stock trading algorithm.  Thousands of stock trading computers operating at the speed of light simultaneously execute huge orders to sell the stock of some big corporation at any price.   The company's market capitalization disappears in seconds.  For a couple of minutes, before the circuit breakers kick in, a fifth grader could buy the whole company with his allowance.  Now, there's an idea for a movie.