Get The Latest!

 Subscribe Via Feed!

Enter email address to subscribe:

Delivered by FeedBurner

Follow scottfactor on Twitter

The following was submitted by Kevin Crosby. He is a software engineer, conservative, and independent contributor to His opinions do not necessarily reflect those of the administration of He can be reached at [email protected]

Last Thursday the stock market (DJI) took a thousand point bowel movement. As this started to unfold, I was doing some research on a new stock prospect and I happened to glance at one of my open browsers with streaming quotes and I saw that the market was down 638 points. I was thinking to myself that this couldn’t be correct so I opened up a new window and rechecked to see if it was a fault on the first web page. What I saw was that the Dow was now down 990 points. That bowel movement could best be described as something an elephant, suffering from a very bad case of the trots, left in the parking lot at the local circus! Hard to imagine an elephant trotting but you get the drift.

I immediately turned on the TV to one of the financial channels to watch the insuring pandemonium. To say the least, it was very entertaining. There was lots of hollering, screaming, and general hand wringing. The one thing that I found interesting about all that was the fact that everyone was saying they had no idea why it was happening. Then someone brought up the theory of a fat fingered trader made a mistake and entered too many zeros when executing a trade and the high velocity computer trading platforms reacted to that. I heard someone else comment that this was highly unlikely as most software used for trading was sophisticated enough that it would be difficult to make that kind of mistake and also if that were the case we would know by now, 70 minutes into this crisis, who it was that made that mistake.

Well guess what. We still don’t know how or why this happened. The article below indicates that the exchange chiefs are also set to face Congressional hearings on Tuesday. Well that ought to be enlightening, don’t you think. We have the crafty talking with the stupid and stupid is in charge. And get this; crafty is bringing the dogs and the ponies. Boy I wish I could sell popcorn at that event. Well a guy would be busier than a one-armed paperhanger with a case of the hives. Lordy! Lordy!

Here is my take on this. Someone or some entity did something to make this event occur. To protect the guilty we may never know who that was or what entity caused it to happen. After all the years that I have spent working on large computers and database management applications, I guarantee that the facts of what happened are very well known to a few that have access to the database that holds the trading data for that day. If it was Joe blow over at acme stock services that made a mistake when executing a trade, than we would all know that by now as this is an issue of trust that must be protected at all costs. Investors must have trust that the system is secure. If that is found out not to be true then I would expect there will be a lot of investors running for the doors with me leading the pack.

I also find it very interesting that at the same time this was happening the house and senate are concocting a big financial over haul bill up at the capitol. Now it may just be my lack of good judgment, but it occurs to me that 98% of the members of congress don’t have the smarts it would take to balance a check book let alone craft a bill with this complexity. I don’t know if you remember this, but these toads used to have their own bank up there at the capitol and it went broke and had to be closed. The voters of this country have done a real bang up job so far, haven’t they?

I see the stock market is up about 350 points so far. It’s being reported that it’s up because of the reported bail out of Greece. Well it’s been reported every day for the last 3 weeks that Greece was being bailed out and at the end of the day Greece wasn’t bailed out and we were still waiting for a plan. Well its being reported that now we have a plan that includes about $10 billion dollars of the US taxpayer’s money being flushed down the toilet known as Europe. The way I see it is that we the taxpayers have just been put on the hook to participate monetarily in the bail out of the next European country that fails. I would think that would drive the markets down $350 not up. This leads me to believe that all those people that control the stock market are on the same plain of those noodles I mentioned earlier that control our government.

One last thing, why should I care if those socialistic countries over in Europe fail? Albeit, the financial impact could be dire, but if they do fail maybe the rest of the world will wake up and see proof positive that their form of government doesn’t work. Maybe they could start all over again and attempt to create something that does work. Hell, they could even use our constitution now that we aren’t using it anymore.

3 Responses to “Stock Market Drop Remains Unexplained”

  • Blake says:


    I’m a computer guy, and, very early in my career, I did some work for a large financial firm.

    I was interested to find out the guys who are allowed to make really big trades are on a separate floor from regular traders. However, from a computer security standpoint, it only makes sense.

    Anyway, if you were designing trading software, would you allow someone the ability to input a trade without the software demanding some kind of floor on the price? Would you really give the trader the ability to be able to ignore that?

    Anyway, moving on, in order to buy the “fat finger” explanation, I’m supposed to accept that A. An experienced trader typed in the wrong amount of shares to be traded and B. neglected to set some sort of minimum purchase price. (I tend to think only a senior trader can sell millions of shares of stocks. I can’t imagine any trading firm would allow just anyone to execute a trade)

    I think it was financial terrorism, nothing more, nothing less.

  • Blake says:

    Oops, should read “allow anyone to make a large trade.”

  • chihooche says:

    Just want to say what a great blog you got here!
    I’ve been around for quite a lot of time, but finally decided to show my appreciation of your work!

    Thumbs up, and keep it going!


Custom Search
Wanna Help?
We The People!
  • #518 - God Will Cause You to Remain
    Jesus said in John 15, "I am the vine; you are the branches. If you abide in Me, you will bear much fruit and your fruit will remain." In life, you may face bumps in the road. You may have had a lot of ups and downs, struggles in finances, or difficulties in relationships that have lasted year after year. You're thinking, "Is it ever goin […]
Referral List