Thursday, September 30, 2010

Flash Crash Revisited

The SEC blaming the flash crash on traders being "spooked" by Waddell and Reed Financial Inc.'s over-sized E-mini S&P500 Futures trades (as reported by Bloomberg and pointed out to be total BS by ZeroHedge) seems to lack any credibility.  On the opposite end of the spectrum, Max Keiser, former options trader and banker believes the flash crash was engineered by banksters to extort a favorable outcome on finreg from Congress.  Which version is really true, or does the truth lie somewhere in between these opposite extremes?  Here is Max Keiser's interview with Alex Jones where he expresses his view that the flash crash was "financial terrorism" in his words: