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The fact that it was only a flash crash and not a crash, I think actually shows the strength of the system. No one really panicked. If a flash crash happened ev

The fact that it was only a flash crash and not a crash, I think actually shows the strength of the system. No one really panicked. If a flash crash happened every week, they would just slow down trades and push more to specialists. I don't think it would be as catastrophic as one might think. It would be a minor shake up.

andreilys 7y ago
Tell that to all the traders whose stop losses were triggered due to flash crashes
- samatman 7y ago
  I'm pretty sure he's not saying a flash crash is harmless, just that it's less harmful than plunging the economy into a worldwide recession.
- ycombobreaker 7y ago
  that value wasn't "lost" from a holistic sense, but transfered to the counterparty. It's a good argument for why stop orders suck, though. the triggering mechanism is too easy to spoof in volatile/illiquid conditions.
- scarejunba 7y ago
  Sure, I will. That's the risk of a stop loss, man. TANSTAAFL. The country doesn't lose anything because the value is transferred to whoever takes the other side.
mcguire 7y ago
For a state actor, it depends on what they do while everyone is looking at the market.