Two of the common features to crashes such as the 60 point drop from Friday to Tuesday are:

1. The forced liquidation of European accounts because of margin calls, in this case because of MF where all their account were liquidated Tuesday at the German open and

2. The missing piece of the puzzle. In this case the 450 million that supposedly was missing from MF segregated customer funds that may or may not have ended up with a large bank.

It is reminiscent of the 1987 crash where the missing piece was whether the us investment banks would be forced to make good on the British Petroleum underwriting price. Of course the most comparable crash was the crash set out by Kerviel where again the inside trading of European entities knowing that there would be massive liquidation at the opening added an exponential fall to the panic. Similar liquidation followed the Lehman bankruptcy.


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