Caucasian males are very unhappy right now! I think this picture is still descriptive of modern Wall St demographics.

So it is likely this 1,000 point sell-off was caused by a trader error. One of our brilliant, creme of the crop, best people forgot million started with an M and not a B, as in Broke, because the douche bags in the private market kept selling subprime mortgages in bundles of most of our nation’s financial products, and caused an IMMEDIATE BALL-DROPPING PANIC. Don’t give me that shit about Fannie and Freddie sold the bulk of subprime mortgage loans either, 80% of subprime mortgage loans were from private lenders (13 Bankers).

ANYWAY, where was I? Oh yes. Something related to Proctor and Gamble stock was traded at a billion and not a million – or whatever – and Proctor and Gamble is part of the Dow, so this meant very bad things for Wall St.

But who was behind the bad trade? That would be CitiBank Citigroup- one of the banks deemed Too Big To Fail.

My hypothesis: This drop was enormous because there are basically 4 banks (CitiBank, Citigroup, Wells Fargo, Bank of America, and JP Morgan Chase) that control the nation’s money. So when the biggest entity in the very small financial club, CitiBank Citigroup, makes a move of a billion, everybody followed like lemmings off the cliff. Clearly this is not a perfect market, where there are many and similar suppliers.

Yes, this was a fairly simple mistake and the loss of money doesn’t mean that banks should be broken up for it. Yet, it exposes their power. There are many good arguments for breaking up the Big Banks (basically anything from here) but chiefly these arguments are about power: economic and political.

This is an example of their economic power. I’m not a finance major, but I challenge any reader (there are a few of you) so show me that the size of these banks does not magnify their trading power in promoting market trends. If CitiBank Citigroup was smaller, the market effect of their silly error would not have been so large. A more decentralized banking sector is probably a more stable banking sector.

Update: Citigroup says it didn’t do it. Which leaves me with the question, what the hell is going on?

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