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News Story Source: Sovereign Man – Simon Black
At precisely 2:32pm Eastern time on May 6, 2010, the US stock market started to drop.
The decline was sudden, and vicious. Within minutes, more than $1 trillion of market capitalization had vanished, with the Dow Jones Industrial Average losing nearly 10% of its value.
This event became known as the 'Flash Crash'. And early explanations pointed to the big investment banks and their high-tech trading algorithms, i.e. software that could buy and sell stocks without human involvement.
When the market started its decline that day, banks' trading algorithms went haywire and started selling everything. This caused the market to decline even further, which triggered the algorithms to sell even more.
The humans were powerless to stop it. There were stories of panicked tech teams at investment banks frantically ripping cables out of the floor trying to shut down the machines.
But the selling went on for 36 minutes… during which time the banks and big funds rack
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