AirTalk for May 7, 2010

Flash crash: fat finger or Greek debt fear?

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Toshifumi Kitamura/AFP/Getty Images

A pedestrian checks the share prices on the indicator at the window of a securities company in Tokyo, on May 7, 2010. The headline Nikkei index of the Tokyo Stock Exchange closed 331.10 points lower at 10,364.59, a two-month closing low, the second consecutive day of sharp declines after Wall Street saw a record drop due to the Greek debt crisis.

In a wild day of trading yesterday, the Dow Jones industrial average plunged nearly 1,000 points before rebounding, but finished down about 350 points. Analysts blame computerized selling and a trading glitch for triggering the market's sudden drop, in addition to concerns over financial conditions in Europe and the Greek debt crisis. What does this mean for the future stability of the market?

Guest:

Chris Farrell, Economics Editor, Marketplace Money


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