What a tragedy! In a single day, the Dow fell 1,000 points, made a recovery, then closed at 347 points down. What could cause something like this to happen? It’s being said that it was just a computer glitch. Or it could have been someone clicking the 1 Billion button on their desktop instead of the 1 Million button. What makes it possible for a $42 stock to sell for one cent for a few minutes during a trading day? Was this really an error, or could this have been stock market manipulation?
Are we going to impose new rules and regulations into the stock market, or will this behavior continue and worsen? How can we continue to invest in the stock market with confidence if at any moment we could possibly lose our life savings simply through a loophole in the online trading system?
At one point today the VIX had risen over 66 percent. Online brokerage platforms were down for nearly a full hour. We were trapped with nothing to do and no one to call. Our life savings were completely out of our hands. At the end of this technological failure, retail investors will have lost Billions of dollars. How many people’s lives fell with the stock market that day?
Since Institutions have the ability to make thousands of trades per second using the internet, with the click of a button, anyone can cause the Dow to drop another 1,000 points. This is a serious problem. Is the stock market really that easy to manipulate? The financial welfare of a nation hanging in the balance at the mercy of a single mouse click! One can only hope new regulations are put in place immediately to prevent something like this from ever happening again. In all honesty, I think new regulations should be implemented and all transactions today should be reversed, and that trade should start up again based on the final prints from May 5th.
I’m sure future history books with read, “May 6, 2010: A terrible day in stock market history”. If it is true, that all this was caused by a software glitch, sloppy clicking, or if it was some kind of manipulation by the hands of today’s trading technology, something must be changed.