What the Hell Happened?

This clip (click image to view) opens with a clear explanation of the types of computertized trading that moves the NYSE and NASDAQ markets. Then, Rick Santelli explains what/why happened and how yesterday's 1,000 point drop was a result of out of control mechanical trading programs. This interview is also proof that Maria Bartiromo has no idea what she's talking about, lol.

Circuit breakers are needed within the actual computerized programs - the regulators don't need to get involved except to encourage the computerized programs to disclose how each program analyzes the "spread" between bid and ask and when to stop executing when the spread gets too large.

As usual, the solution is simple; hopefully, the Feds will stay out of it and let the private market fix it themselves.