Is high frequency trading wagging the dog? Don’t worry, government tell us, all is well.

Sorry for the really long title, but the Mark Buchanan article at Bloomberg suggests the government sleuths unpacking the Dow Jones Industrial Average flash-crash—a 600 point swing n a matter of minutes—of two years ago have missed the boat.

How so?

  1. Buchanan’s conclusion: a flash crash could happen again (or it could be even worse).
  2. The innocent were assigned culpability.
  3. Terms were redefined/contradicted.
  4. Facts were ignored.

Other than that, all is well.

Instead of more competent government sleuths—or crowd sourcing the problem—simply more government would be a good start towards alleviating any real concerns (if they really existed, of course).

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About Professor Mockumental

I enjoy almost all forms of parody, buffoonery, and general high-jinks. Satire has shown itself to be an essential societal need; I therefore humbly offer my services in such a manner. I enjoy mocking the usual suspects at the New York Times (Charles Blows, Moron Dowd, and the earth is flat guy) and Washington Post (Dana Milkbag, E.D. Dijon, and David Ignoramus). There are many others as well, but sadly, there are always too many targets and too little time.

Posted on May 8, 2012, in Uncategorized and tagged , , , . Bookmark the permalink. 1 Comment.

  1. What most people fail to realize is that flash crashes before technology were far worse

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