Beware of Falling Lemmings

TSX Index, May 6th
The Day in Trading: Flash Crash of Thurs May 6th.

I found this graph over on the Toronto Stock Exchange blog (link in sidebar) and I couldn’t help but laugh. What a spectacular visualization of the sheer drop in valuation.

Of course, all fingers are pointed to some anonymous trader… some human error and computer glitch that allowed the free-fall to happen; the “flash-crash” of twenty-ten.

Regardless of glitches (computer or otherwise) there were a lot of people who lost their heads and followed suit by selling…. I guess people are just jittery these days.

This is the advantage of living in a completely different time-zone: it is impossible for me to be affected by up-to-the-minute equity prices.  By the time I read about North American markets, they are closed.

Not that I need the protection, but it’s a little more insulation to have.

I can’t imagine having been in front of a TV while this was happening. For 30 minutes, it seems like there was just confusion and mayhem.

I would LOVE to hear from any readers that happened to have been reading a financial site, or watching the news during those spectacular 30 minutes.

I await your synopsis.

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