Federal investigators found that the crash — which caused the Dow Jones industrial average to sink by nearly 1,000 points before recovering — was set off by a trading firm's effort to sell $4.1 billion in specialized futures contracts.
http://www.latimes.com/news/opinion/editorials/la-ed-governor-20101003,0,9130...
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These algorythms are basically an autopilot that can react far quicker than human traders. That's great when the trades are happening so fast, but when things start going wrong, could end up disasterous.
dangerouslytalented 1 year ago