Computers blamed for stock market plunge

I was sitting in my car when the market went crazy today. I’m glad I was. My BP and GS stocks have been battered enough over the last few weeks. I didn’t need the excitement of today. Some of the blame for the wild gyration is placed on computers.

From Reuters: But the follow-through selling that pushed stocks of some highly regarded companies into tailspins exacerbated concerns that regulators can quickly lose control of the markets in a world of algorithmic trading. High-speed trading, which uses sophisticated computer algorithms based on specific scenarios to automate transactions at speeds in the millionths of a second, now accounts for about 60 percent of U.S. equity volume. (read the entire Reuters story embedded below.)