Isn't (relative) HFT and program trading what is generally blamed for the 1987 crash?
Thanks for the information, thom. It should be a good read.
Corp, it's kinda along those lines. I think it was referred to as "portfolio insurance" back in the day.
I was thinking about this the other day. Back in 1987 (I was too young to remember so if anyone can correct me here if I'm wrong) a lot of people thought that drop would lead to a new great depression. Now we can see that It didn't.
I wonder what would happen this time though. I mean, we have used up a lot of the stimulus and deflation is a possibility. Perhaps nothing would happen since, well, Mr Market jumps around all the time and it doesn't really reflect reality sometimes. We shall see!