Send a Tweet
Most Popular Choices
Share on Facebook 2 Share on Twitter Printer Friendly Page More Sharing
Exclusive to OpEdNews:
OpEdNews Op Eds    H3'ed 5/8/10

What's Up With Wall Street?

By       (Page 1 of 2 pages)   No comments
Become a Premium Member Would you like to know how many people have read this article? Or how reputable the author is? Simply sign up for a Advocate premium membership and you'll automatically see this data on every article. Plus a lot more, too.
Author 8393
Message John Sanchez Jr.
Become a Fan
  (45 fans)

Thursday, May 6, brought the New York Stock Exchange an eye opening shock that it hadn't prepared for. An afternoon drop of nearly 1,000 points on the Dow Jones Index sent traders scurrying, dropped some stock prices to zero while sending at least one other to the dizzying heights of 100,000, and transpired over a period of twenty minutes.

If you ask me, something stinks. A claim that the calamity was caused by a "fat finger" trade (a keyboard entry error) originating at Citibank does nothing to deodorize it. Representatives of Citibank have said that they can find no evidence of such an error. Even if Citibank is an innocent dupe in this, it still points up the financial sector's vulnerability to cyberagression or good old-fashioned fraud.

The confluence of algorithmic program trading and advanced computer system hacking opens huge possibilities for fraud in financial markets. A person or entity bent on enriching themselves could hack in, drop a selected victimized stock, buy big on the drop, sell it all on the correction and have their fingerprints camouflaged by the flurry of program trading that would be triggered. Any one of these transactions would take millionths of a second to execute with a trading program laid out, and by the time exchange security and the authorities sifted through the thousands of trades that were prompted, the perp could be knocking back umbrella drinks on a no extradition tropical island. Indeed, the perp could have executed the entire chain of events from that island.

It is not even stocks alone that were affected by this market anomaly. The price of gold rose to over $1,200/oz. on investors' fears.

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).


Rate It | View Ratings

John Sanchez Jr. Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

I am a lifelong resident of the Chicago suburbs, with a several year hiatus to serve in the Navy when my Vietnam era draft notice turned up. I had been told that guys with last names like mine were among the preferred cannon fodder in the Army, so (more...)
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
   (Opens new browser window)

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The "Social Security is a Ponzi Scheme" Hoax

Regarding Boris Nemtsov

How to Steal $2.5 Trillion

Wisconsin's Union Workers Have Always Paid 100% of the Cost of Their Benefits

Considering Edward Snowden

Republican Bipartisanship, a Union of Both of Their Faces

To View Comments or Join the Conversation: