An excerpt from the article “Computers, Not Human Error, Likely Caused Market Meltdown”:
Computerized sell programs triggered by global events-rather than trader error or “fat finger”-appear to have caused Thursday’s unprecedented market swing, according market pros who are reconstructing the nearly 1,000-point stock selloff. “It wasn’t a fat finger,” said Dave Lutz, managing director of trading at Stifel Nicolaus in Baltimore. “The markets became unglued…Most of it was centered on the fact that currency markets affected the equity markets.”
Exactly. What’s wrong with everyone going for the door at the same time? Nothing. It’s normal. Frankly, the real issue is the self-serving media and government players coming on to blame an “error”. That was crap. People are scared and technical programs got sell signals. That’s it.