The *NEW* Frank Coluccio Technology Forum Message Board

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Technology Stocks : The *NEW* Frank Coluccio Technology Forum

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To: Win-Lose-Draw who wrote (39676)	9/18/2011 3:23:13 PM
From: axial	of 46821

WLD, thanks for a concise summary. Re: "There is nothing wrong with "600 point flash crash" or 40% longer term downdrafts." True. There's nothing wrong with a *thousand-point crash. Or 5-year sideways movement. As Mandelbrot proved markets, coastlines and mountains are fractal. But such crashes have been driven by human behavior. They were not independent and autonomous actions by automated trading systems, made totally without regard for humans. They did not require regulators to reverse trades. They did not requires extensive inquiry into why they happened. Flash Crashes are still not understood. What IS understood - without question and conceded by all - is that they defy human expectations. When the share prices of perfectly healthy companies drop to near-zero in milliseconds that is not* a historical norm, nor is it consistent with reality. We'll leave the greater issues of systemic risk - derivatives, HFT and ETFs - for another day. Jim

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