How One Man Can Crash the Stock Market




Money Talking show

Summary: <p>Five years have passed since the Dow Jones Industrial Average fell nearly a 1,000 points in a matter of minutes, and we're still trying to understand what happened. In the months after the crash, regulators concluded it was due a variety of factors, in particular, the actions of <a href="http://money.cnn.com/2010/05/14/markets/flash_crash_waddell_reed/?iid=EL" target="_blank">one institutional trading firm</a>.</p> <p>But this month, <a href="http://www.ft.com/intl/cms/s/0/dd82d0fe-f3dc-11e4-99de-00144feab7de.html?siteedition=intl#axzz3ZS1hya2p" target="_blank">Navinder Singh Sarao</a>, an independent trader based in London, was arrested for manipulating the market that day in 2010. He's accused of "spoofing," or entering a series of fake requests into the market, effectively bluffing, and making other traders think the market is going up or down. He says he's done nothing wrong.</p> <p>Meanwhile, regulators are behind schedule on <a href="http://www.wsj.com/articles/flash-crash-overhaul-is-snarled-in-red-tape-1430868811">one potential protection</a> against wily markets and suggest that as the stock market becomes more complicated, they won't be able to keep up.</p> <p>Money Talking Host Charlie Herman asks guests <a href="http://time.com/author/rana-foroohar/" target="_blank">Rana Forooha</a><a href="http://time.com/author/rana-foroohar/">r</a> from Time Magazine and <a href="https://twitter.com/moorehn">Heidi Moore</a> from Mashable how the market could rest in the hands of one man -- and what, if anything, can be done to stop it from happening in the future.</p> <p>And then the <a href="http://www.adweek.com/adfreak/mcdonalds-has-brought-back-hamburglar-and-its-all-anyone-can-talk-about-164569" target="_blank">Hamburglar</a>. What more is there to say?</p>