iOS app Android app More
May 5, 2015

Celebrating the Flash Crash with a Wall Street Sales Tax

This week marks the fifth anniversary of the flash crash. For those who don't remember, the Flash Crash was when the stock market lost almost nine percent of its value from its opening level, with most of this decline occurring in a five-minute period. The market quickly recovered most of this loss. As long as you didn't sell stock in the 30-minute crash interval, you weren't affected by this plunge. But the crash did reveal the extraordinary instability in the stock market due to short-term trading. The issue of short-term trading is the key here. There was no event in the world that triggered the plunge. There was no outbreak of war, major terrorist incident, or natural disaster that sent stock prices plummeting. There wasn't even a bad profit report from a major company. The crash was based simply on program trading that fed back on itself, turning a downward blip into a major plunge.

ISIS Claims Responsibility For Texas Attack

Texas
Ben Torres via Getty Images

Suspect Was On Authorities' Radar For Years...

France Approves Sweeping New Surveillance Powers

Manuel Valls
FRANCOIS GUILLOT via Getty Images

More WorldPost
'Ghost City'.. PEN Vs AK-47.. Bibi Blow.. Communist Uber?!.. Burundi Photos.. Brotherhood's Reality

White House Moves Closer To Major Executive Action On Overtime Pay

Barack Obama
Spencer Platt via Getty Images

More Politics
GOP Evolution Denial.. Obama Bump.. Waitress vs. Governor.. GOP's 'Red Wall'?.. GOP Exaggeration

Nepali Police Continue To Recover Bodies After Devastating Earthquake

Nepal Police
NICOLAS ASFOURI via Getty Images

Bad Weather Cuts Links With Avalanche-Hit Village

California's Drought Has Killed Over 12 Million Trees In The Last Year

California National Forest
MLADEN ANTONOV via Getty Images

Huckabee's In!

Huckabee
NBC News

Greece Battles To Avert Catastrophic Funding Crush

Greece
ASSOCIATED PRESS

Sheryl Sandberg Makes First Public Comment Since Husband's Death

Dave Goldberg Sheryl
ASSOCIATED PRESS

Obama 'Heartbroken' Over Death Of SurveyMonkey CEO Dave Goldberg

GOP Senator Is Blocking His Own Judicial Nominee, For Some Reason

Pat Toomey
ASSOCIATED PRESS

Manny Pacquiao Could Get Suspended For Far Less Than Beating A Woman

Mayweather Pacquiao
JOHN GURZINSKI via Getty Images

More Sports
Steve Ballmer Loses His Mind, Again.. Jameis Winston's Post-Draft Meal.. Melo Goes To Baltimore

Afghanistan's Poppy Farmers Are Expecting A Windfall

Afghanistan Opium
ASSOCIATED PRESS

Firefighters' Union Says New Oil-By-Rail Rules Fall Short

Oil Train West West Virginia
ASSOCIATED PRESS

Obama's Approval Rating Gets A Bump

Obama
Pool via Getty Images

Mike Huckabee Jokingly Breaks Campaign Finance Law In 2016 Announcement

Mike Huckabee Campaign Finance
Matt Sullivan via Getty Images

Incest Becomes Last-Minute Campaign Issue In Alaska Race

Anchorage Alaska
Streeter Lecka via Getty Images

Democrats Will Hold Six Presidential Primary Debates

Hillary Clinton
Kevin Hagen via Getty Images

Economists Blast NCAA's Latest Argument Against Paying Players

Ncaa Logo
ASSOCIATED PRESS

Missouri Senate Overrides Veto Of Welfare Restrictions Bill

Food Stamps
ASSOCIATED PRESS

DRAMATIC VIDEO: Migrants Rescued From Sinking Boat

Migrant Rescue
ASSOCIATED PRESS

Dems Warn GOP Budget Could Slash Funding For Police Body Cameras

Police Body Cameras
George Frey via Getty Images

How To Talk To Your Kids About Bernie Sanders

Bernie Sanders
ASSOCIATED PRESS

Jon Stewart Explains When It's OK To Shoot People Who've Offended You

Daily Show
Comedy Central

How GOP Presidential Candidates Are Getting Away With Denying Evolution

Ben Carson
Bill Pugliano via Getty Images

Carly Fiorina Defends Tenure At HP After Criticism Over Layoffs

Carly Fiorina
Scott Olson via Getty Images

5 MONTHS, NO ANSWERS

Tamir Rice
ASSOCIATED PRESS

More Black Voices
'Culinary Solidarity'.. Cop: 'I'm Here For You'.. Morgan Freeman.. #BlackLivesMatter

Dozens Feared Drowned As Migrant Crisis Continues

Migrants
ASSOCIATED PRESS

The Obama Administration Could Limit Secretive Political Ads Before 2016. Will It?

Tom Wheeler
Chip Somodevilla via Getty Images

Women's Colleges Are Admitting Trans And Gender-Fluid Applicants. Now What?

Armstrong
Morgan Pulleyblank

Floyd Mayweather Says He Would Fight Manny Pacquiao Again

Pacquiao
JOHN GURZINSKI via Getty Images

7 Things Everyone Should Understand About the UK Election

Cameron Miliband
AP

Bailout Record: It's Complicated

Gop Bailout Mobile
Getty Images/AP

Food Stamp Recipients More Likely To Be Obese, Study Finds

Grocery Aisle
ASSOCIATED PRESS

WHAT'S WORKING
What Every City Can Learn From Charlotte About Ending Homelessness

Homeless Man United States
ASSOCIATED PRESS

More Impact
Truckers Fight Trafficking.. Gates' AIDS Prediction.. Africa's 'Sears' Photos.. Help Nepal

Fox News Host Apologizes For Network's Baltimore Shooting Mistake

Shep Smith Baltimore Shooting
Fox News

Anti-Muslim Activist Defends Free Speech Following Garland Shooting

Pamela Geller
ASSOCIATED PRESS

Winning Cartoonist Calls Shooters' Deaths 'Justice'

FOLLOW HUFFPOST

    1. HuffPost
    1. HuffPost
    1. HuffPost
    2. View all RSS feeds

Kendall Jenner Breaks Down Crying About Bruce Jenner

Kendall And Bruce Jenner
Amy Graves/WireImage

How This Newlywed Repaired Her Sex Life After Fighting Cervical Cancer

Michelle Whitlock
Michelle Whitlock

More HuffPost Live
The Problem With Mass Incarceration.. Helen Hunt.. LGBT In Ancient Greece.. Starting A Business

Guy Who Wanted To Look Like The Hulk Almost Lost His Arms

Real Life Incredible Hulk
Barcroft TV / YouTube

More Weird
Weed Candy.. Fat Cat.. Saved Baby Ducks.. Penises On Potholes.. Steve Buscemi Dog

How To Watch The Cinco De Mayo Meteor Shower

More Science
Shrinking Everest.. Tiny Dino.. Healthy Brain.. Hologram World.. 'Blood Falls' Explained.. 1 in 6 Species

6 Hours Of Photoshopping Done On Fashion Photos in 90 Seconds

Photoshop
RARE Digital Art / YouTube

More Style
Kim K. Copies Beyonce.. Best Summer Flats.. Wavy Bobs Inspo.. 'Golden Girls' Fashion.. WOW, J.Lo!

Jennifer Lawrence's Met Gala After-Party Dress Steals The Spotlight

Jennifer Lawrence After
Splash News

More Entertainment
Kurt Cobain Doc.. Star Wars Day.. FKA Twigs And R Patz.. Ryan Gosling's Cereal.. Met Gala Time

Tiger Woods Says He Hasn't Slept Since Breakup With Lindsey Vonn

Tiger
Golf Channel

Yes, Your Beard Might Be As Dirty As A Toilet Seat. No, You Don't Have To Shave It.

Beard
shutterstock

More Healthy Living
Amazing Weight Loss.. Yoga Mat Tips.. Banish Burnout.. Thigh And Ab Workouts.. Inner Peace

9 Inspiring Quotes About Teachers Who Changed Lives

Teacher Classroom
Alamy

More Good News
Happiest Countries.. Hospital Workers Brighten Kids' Days.. #PaintYourNailsForBruce.. Prince Harry

Lottery 'Winner' Handed $75 Instead Of $75,000

Lottery Winner
KTLA

Ellen Albertini Dow, Rapping Granny From 'The Wedding Singer', Dies At 101

Ellen Albertini Dow
Getty Images via Getty Images

Fisherman Catches Piranha On Arkansas Lake: 'I About Messed My Pants'

Fish
KNWA Fox 24

Daycare Worker Fired For Candid Facebook Post

Fired Over Facebook Post
CBS DFW

More Business
Obama 'Heartbroken'.. RIP Corinthian.. Chrysler.edu?.. Tesla's Skeptical View.. Why Fiorina Will Fail

Obama And Letterman Make Retirement Plans

Obama Letterman Retirement
Late Show With David Letterman

More Comedy
Councilman Mic'd While Peeing.. Funniest 'Star Wars' Scene.. Nick Offerman Sings.. Gins-BURNS!

Awesome Google Doodle Honors Daredevil Journalist

Nellie Bly
YouTube

More Media
Maddow SLAMS Fiorina.. Obama on 'Letterman'.. Google Honors Daredevil Journalist.. Met Gala Memes..

Horrifying 'Kill The Faggot' Video Game Causes Controversy, Outrage

Anti Gay Game
YouTube/Jim Sterling

More Gay Voices
Britney Takes Part In Gay Wedding.. Magazine Printed With HIV+ Blood.. Pastor's Homophobic Sign

7 Ways To Breakup Like A Boss

More Divorce
Lost My Beautiful.. Not Cut Out For Marriage.. Divorce Myths.. Why Women Cheat.. Talk About This

WHAT'S WORKING
He Beat Stage IV Lung Cancer. Now He's Planning To Run An Ultramarathon.

Yariv Kafri Family
Yariv Kafri

Baseball Fan Out-Sprints Security, Somersaults Over Home Plate

Streaker
Instagram

Leaked Sony Email Reveals Marvel's Distaste For Female Superhero Movies

Black Widow Scarlet Johansson
Marvel

This Brain Hack Could Help You Stop Procrastinating

Procrastination
gece33 via Getty Images

A Day In The Life Of A New York City Delivery Guy

Delivery Guy Seamless
Irina Dvalidze/HuffPost

More Taste
Best New Sandwiches.. Manny Pacquiao Cake.. Margaritas.. Guacamole Recipes.. DIY Nutella

This Worm Is Freaking Us Out

Worm
YouTube: Manchester RUT

WHAT'S WORKING
How These Mayors Rise Above The Stress Of Their Demanding Jobs

City Hall Los Angeles
Kevork Djansezian via Getty Images

Giant Egg Spill Leaves A Runny Mess

Egg Spilled
Spartanburg OEM

Pizza Delivery Man Gets Stabbed, Makes Delivery Anyway

Josh
WLKY

All The Red Carpet Fashion From The 2015 Met Gala

Met Gala Red Carpet 2015
Getty Images

WHAT'S WORKING
How Art Is Helping Nepal's Children Express Themselves After The Earthquake

Nepal Children
ROBERTO SCHMIDT via Getty Images

The Sexiest People In The World Are From...

Ipanema Beach
Antonello

More Travel
Cheap Euro Flights.. Top Cruise Cabins.. City Parks.. Sea Caves.. Travel Throwback.. Spain ♥.. Pilot Q&A

Where Are These Teen Heartthrobs Of 2005 Now?

Jesse Mccartney Then And Now
Getty Images/AP

More Teen
Teen Dancer Kills It.. 'Too Revealing' Prom Dress Gets Student Suspended.. Funny Teen Tweets

Yes, You Can (And Should) Make Nutella

Nutella
Thinkstock

Want To Find Happiness? Do This In The Shower Every Morning

Washing Hair
shutterstock

More Fifty
Sexless Marriage.. Granny Gray Hair Trend.. Best Places To Retire Overseas.. Dating After Divorce Advice