1931 = 2010 : All over again…

There is s all sorts of speculation over what caused the crash today.  The answer is very  simple : PURE FEAR.

Everyone is looking for someone to blame, but we have ve seen this happen in markets for hundreds of years.  It happened before there were computers and it now happens that there are computers.  Today was a classic fear filled day.

We saw huge downside in many debt and forex instruments before the crash and the equity markets were the last to capitulate.  The bids fell off the board and the sellers just continued to hit the bids.  There might have been some “fat finger” trades or some electronic trading that contributed, but this was primarily fear.  Good old fashioned fear.

This has always happened in markets and will always happen in markets.