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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: e2thex who wrote (17895)2/20/2011 1:01:28 PM
From: ahhahaRespond to of 24758
 
Explain how humans could interfere.

The '87 crash didn't immediately undo itself like the Flash Crash because humans could substantially interfere and did. In particular, the specialists walked off the floor when the market was down 8%. Without specialists there to provide bid liquidity in the last hour the market dropped another 14%. Then, few humans wanted to be involved in the ensuing days, and that had the effect of failing to repair even though hundreds of corporations immediately announced plans to buy large quantities of their stock.