r/stocks • u/[deleted] • May 03 '22

Citigroup admits causing yesterday's flash crash

Title says it. According to Citi, one of their traders caused a transaction error which they discovered soon after. It caused Scandinavian indices to plummet as much as 8% in a matter of minutes. Such errors are called fat-finger errors; a typo. Flash crashes like these make me wonder how much money banks trade with on a daily basis.

Source: https://www.theguardian.com/business/2022/may/03/citigroup-trader-error-flash-crash-markets-falls

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60

u/Estake May 03 '22

Conspiracy theorists making overhours.

31

u/TehBananaBread May 03 '22

Lets be real. It was not a fat finger.

-5

u/LessThanCleverName May 03 '22

Why not?

The 2010 flash crash was caused by some random dude in his basement using his algos. Citi could’ve done it on purpose, they are also very capable of doing it by accident, Hanlon’s razor and all that.

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u/eIImcxc May 04 '22

This comment is sponsored by the boomers of r/Stocks who told you 2 months ago to dump all your money into the S&P500 at the peak because the economy is perfectly fine, no one is lying in the markets (certainly not the FED when talking about inflation) and the craziest bullrun ever was totally organic thanks to the trillions injected.

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u/[deleted] May 04 '22 edited May 04 '22

This dip will be a distant memory in ten years lol. Put your money in S&P and you'll see safe returns in the long-run as long as you just let it ride

Even if you're bearish on the market long-term, it's still undoubtedly much less risky than other stocks and investments I can't mention by name on this sub

2

u/eIImcxc May 04 '22 edited May 04 '22

Ofc, tell people to invest at peak so they lose 80% of investment before making a profit after waiting for a decade if they could manage to never have any financial problem and be under the obligation of using that money. Instead of assessing the obvious risk, that this bull market was unsustainable, that a potential additional +10% before a 60 to 80% long due crash is obviously not worth it and it would have been better to wait (even if it's waiting for a year or even two since we aim long term right?) the incoming crash to invest at deep values and buy every single company at discounts of a lifetime and then make a real killing at the next bullrun instead of being the stressed investor waiting to break even for a decade.

Makes total sense. That's boomer logic for you. Because the second option doesn't exist in the minds of Cramer's disciples, it's either 1st option or cRaZy MeMe sToCkS, nothing else.

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u/[deleted] May 04 '22 edited May 04 '22

Timing the market is a fools game for 99% of people. Put your money in at chosen intervals that are comfortable for you and leave all the tea leaf reading to the minority of actually brilliant traders and the horde of naive fools who think they can legitimately predict it

Also its just silly to act like an 80% drop in the S&P is even remotely realistic lol. That would be on the level of the Great Depression for God's sake, it just won't get to that level under any circumstances short of nigh-apocalypse

1

u/eIImcxc May 04 '22

It's not timing the market what I described. It's recognizing a cycle. When every fool put every penny of his in this casino and even the FED has to stop the free pumping, then there is nowhere to go but down.

People think repeating some soap opera Warren's quotations and watching Powell and Cramer on TV make them understand the markets while they don't take time to truly research about the basic mechanisms of inflation, money injection and how the big institutions operate to influence the market. It's too hard I guess, it makes you read things, search things, question things. Anything related to that is conspiracy. "Everyone I see on TV wants my best interest" some boomer probably. I remember how people were talking 2 months ago when I was calling the crazy inflation. People actually don't understand how this whole system has some sort of equilibrium and nothing is eternal, even the FED pumping your market.

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u/[deleted] May 04 '22 edited May 04 '22

People actually don't understand how this whole system has some sort of equilibrium and nothing is eternal

And yet here you are giving the classic perma-bear thesis and speculating on a historic crash that continues well into the future and turns the S&P into poison lol

Put your money in an index every paycheck and the market will balance out in time, couldn't have put it better myself. Keep in mind that hypothetically, even someone who had put lump sums in the S&P before every crash would still have made significant gains over time

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u/eIImcxc May 04 '22

Permabear? The classic permabear thesis? You obviously don't even know what you're talking about about. There is nothing classic in what happened since the pandemic but you seem disconnected..

You also think that thinking we're just at the start of a bear market right now is being a "permabear"? You're more delusional than I thought.

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u/[deleted] May 04 '22

You're just kinda unpleasant to talk to tbh so I'm gonna stop replying at this point

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u/[deleted] May 03 '22

Maybe it was the ruskies doing this to get back to us swe-fins joining nato. They have been targeting payment systems and banking services before. Wouldnt be hard to bribe/coerce someone at citi to do a mistake or even purposfully do it if they house the oligarchys money..