Wednesday, August 01, 2012

I told ya so.

Here's more proof that short-term market manipulation is being performed by high-frequency trading computers. Today was just one of those rare times when the system hiccuped. It's usually performed more subtly and to the financial benefit of the market makers.
Flood of Errant Trades Is a Black Eye for Wall Street
An automated stock-trading program accidentally flooded the market with millions of trades Wednesday morning, spreading turmoil across Wall Street and drawing renewed attention to the fragility and instability of the nation’s stock markets ...

“The machines have taken over, right?” said Patrick Healy, the chief executive of the Issuer Advisory Group, a capital-markets consulting firm. “When events like this happen they just reaffirm that these aren’t investors, these are traders.”

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