posted by admin on May 21
Let’s discuss what a 1,000 point drop in the stock market actually means. This is well over $1-Trillion Dollars lost in market cap. So, when the largest drop and rebound in stock market history occurred on May 6, 2010 due to a so-called computer glitch occurred, well that should stop us to think about what we are doing on Wall Street. This Stock Market hick-up could have been many things – a hacker adding 4-zeros to a Procter and Gamble sell trade, perhaps large off-system block-trading selling to cover using many accounts, or a test of our financial system vulnerability.
Turns out, the Stock Market representatives tell us it was merely a glitch, or fat-finger (someone mistakenly adding several zeros to a large selling trade – instead of 10 million shares – 10-billion for instance). This is what the public is told, and yet whatever it was, it is fair warning for us to get our act together and take nothing for granted. Remember in warfare – economic warfare is much more devastating to stability. If we have such vulnerabilities we need to shore them up now.
Part of the stock market drop on that day was said to be the issues with Greek Debt. In Greece there are many challenges, which goes without saying, and indeed that’s a whole other issue, combined with a computer glitch, your basic “Perfect Storm” on a globally fear ridden day in securities. Consider in Greece there was a National Strike, you have 55,000 people marching and perhaps for the rest of the week, meanwhile their debt is now at junk status, according to S & P, and other rating agencies.
Then in Europe there is still an issue with all of the PIIGS – Portugal-Italy-Ireland-Greece-Spain, indeed, all at risk. The Eurozone is in deep trouble, but let’s not forget of course so too is the US with many nearly economically failed states such as CA, MI, NJ, NY and many other US States, this isn’t funny. And it hardly matters what continent you are on. In fact, I bet the FED and Treasury were in high level crisis mode on that week, as this game is getting too serious to play at this level. Yes, May 6, 2010 was more than interesting day, I’ll give you that much.
Now then, a question for all – what are we going to do to secure our stock market to prevent this sort of thing in the future, and to insure a hacker doesn’t take down our markets, or a foreign group doesn’t use our markets to economically attack us? Please consider all this.
Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes that if you are going to build something then hire a decent contractor; http://www.tricitiescontractors.com.
Note: All of Lance Winslow’s articles are written by him, not by Automated Software, any Computer Program, or Artificially Intelligent Software. None of his articles are outsourced, PLR Content or written by ghost writers.
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