The truth about yesterday’s market collapse:

[Financial Saint]

Top 100 hedge funds usually hire PhDs in mathematics, physics and computer science from MIT. Well all of those MIT students are taught from the same professors, so for that reason pretty much all of them have the same knowledge and the result of that is that they build the same type of algorithms and systems for trading in the market. So the result of that is that they all pretty much go the same way and the result of that is yesterday’s 1,000 points drop. The geniuses have failed again and then walked away unharmed with no consequences. I am sure they have lost money too, but it was not their money, it was their investor’s money.
This is just my humble opinion.

 

[MKTrader]

Quote from Financial Saint:

Top 100 hedge funds usually hire PhDs in mathematics, physics and computer science from MIT. Well all of those MIT students are taught from the same professors, so for that reason pretty much all of them have the same knowledge and the result of that is that they build the same type of algorithms and systems for trading in the market. So the result of that is that they all pretty much go the same way and the result of that is yesterday’s 1,000 points drop. The geniuses have failed again and then walked away unharmed with no consequences. I am sure they have lost money too, but it was not their money, it was their investor’s money.
This is just my humble opinion.

So "the truth" = your humble opinion?

 

[jalee25]

u should change the title...

 

[circadian]

Quote from Financial Saint:

Top 100 hedge funds usually hire PhDs in mathematics, physics and computer science from MIT. Well all of those MIT students are taught from the same professors, so for that reason pretty much all of them have the same knowledge and the result of that is that they build the same type of algorithms and systems for trading in the market. So the result of that is that they all pretty much go the same way and the result of that is yesterday’s 1,000 points drop. The geniuses have failed again and then walked away unharmed with no consequences. I am sure they have lost money too, but it was not their money, it was their investor’s money.
This is just my humble opinion.

Algos getting scapegoated here. Paper was selling size in the S&P large pit yesterday. Don't belive the bullshit that you hear about glitches and such. While there were a few individuals that saw ridiculous prints, paper was giving an all too human element to the selloff. It was the real deal yesterday, not some false reality that it's being portrayed as.

 

[nazzdack]

Quote from Financial Saint:
....PhDs in math, physics and computer science from MIT.

Did you attend Boston College or Boston University?

 

[jalee25]

sure... if the dudes from MIT were smart enough to expose card counting and Vegas... it's possible they will be capable of pulling something in Wallstreet. just hope there's a big tough guy like lawrence fishbourne around ready to wreck havok to those who get greedy...

 

[olias]

Quote from circadian:

Algos getting scapegoated here. Paper was selling size in the S&P large pit yesterday. Don't belive the bullshit that you hear about glitches and such. While there were a few individuals that saw ridiculous prints, paper was giving an all too human element to the selloff. It was the real deal yesterday, not some false reality that it's being portrayed as.

That's a good point. I had the squawk box on too. The guy almost lost his voice he was so excited.

 

[peilthetraveler]

Whats worse, is that if you were some guy from a community college who programmed a trading system that was the complete opposite, you got your trades busted.

 

[jalee25]

Quote from olias:

That's a good point. I had the squawk box on too. The guy almost lost his voice he was so excited.

i was watching Kramer... he sounded exited too... uncharacteristic of him... after such a large down day... his theory was somebody keyed a couple extra zeros...

 

[krazykarl]

Quote from Financial Saint:

Top 100 hedge funds usually hire PhDs in mathematics, physics and computer science from MIT. Well all of those MIT students are taught from the same professors, so for that reason pretty much all of them have the same knowledge and the result of that is that they build the same type of algorithms and systems for trading in the market. So the result of that is that they all pretty much go the same way and the result of that is yesterday’s 1,000 points drop. The geniuses have failed again and then walked away unharmed with no consequences. I am sure they have lost money too, but it was not their money, it was their investor’s money.
This is just my humble opinion.

You don't trade or write systems...it's blatantly obvious.