Topic: Flash Crash

Sir Animus of Dogpatch sent a donation of $1,907, which the hosts interpret as a reference to the 1907 bankers' panic. They compare historical market "hiccups" like the 1987 Black Monday crash to current economic volatility. The note also commemorates the anniversary of the "Angelic Knight's" passing.

A hacked Associated Press tweet claiming explosions at the White House caused a temporary "flash crash" in the stock market. The hosts suggest the event was either a coordinated financial play or a viral marketing stunt for the upcoming film White House Down.

The New York Times reports on potential crackdowns on rapid computerized stock trading following the "flash crash." The hosts suggest that these high-frequency trading mechanisms, used by firms like Goldman Sachs, are currently propping up the market. They predict a market collapse if these systems are restricted.

New information suggests the May 2010 "Flash Crash" may have been caused by code written in Erlang, a language that allows for recompiling and reloading code while a server is operating. This supports a theory that a programmer, possibly linked to Sergei Aleynikov, ran a "beta test" that accidentally crashed the market. The Erlang virtual machine's ability to execute old and new code simultaneously is cited as a key factor.

The May 6, 2010, stock market "Flash Crash" saw the Dow Jones Industrial Average drop nearly 1,000 points in minutes. While mainstream reports blame a "fat finger" trading error at Citibank, the hosts examine audio from the Chicago Mercantile Exchange pit during the collapse. They highlight a massive bet against the market placed ten minutes before the crash as evidence of a coordinated event rather than an accident.

The hosts allege that Goldman Sachs uses corrupt "flash trading" computer models to manipulate market directions. They argue that the current market decline is a result of the inter-bank war between the "Goldmans" and the "Chases." Listeners are advised to exit the stock market immediately, as the hosts believe the entire system is a fake, manipulated Ponzi scheme.