This Week’s Sign the Lunatics are Running the Asylum

“Citigroup is investigating a rumor that one of its traders entered a trade that helped precipitate a drop of almost 1,000 points in the Dow Jones Industrial Average, a spokesman for the bank said on Thursday.”

Developing story. More here. But I’m afraid I’m just not buying the “dumb trader” excuse. It’s not like he mistakenly added an extra zero before hitting the return key. More likely, if there was indeed an error, the odds seem high that it would be related to high frequency trading.

Ah, Wall Street. Don’t be so afraid to be competent!

And wasn’t there a movie about this sort of thing?

Cale Smith

About Cale Smith

Portfolio Manager at Islamorada Investment Management.
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One Response to This Week’s Sign the Lunatics are Running the Asylum

  1. Marilyn from Key West says:

    After reading your Letter to Investors this weekend, I felt rather smug hearing the business report on NPR radio when my alarm went off this morning. You nailed it!
    Somehow the EU stepped up. And today’s market made a memorable rebound. You inspire confidence ! Thanks for keeping watch over my portfolio!