Tuesday, April 28, 2015
Flash Crash
In 2010 an event known as the "flash crash" occurred where it is believed one man lost billions of dollars in the stock market, causing the Dow Jones industrial to lose over 600 points in 5 minutes, which is a lot. This puts the ideas in fellow traders heads that this exact thing could happen again causing them to lose a lot of their money. Trader Navinder Sing Sarao is the believed cause of this market drop and was recently arrested for doing so. But I don't understand why, all he did was play the system in a smart way to gain himself money. The stock market is a gamble to begin with anyways, so he found a way to crack the system. None the less he was arrested and interrogated a few times before he was arrested, yet there is no solid evidence that he is the sole cause of this crash, although a lot of things point to him. The biggest concern with this is that it can happen again, causing billions lost, not only for traders but also for our country.
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