Replaying The Flash Crash

Tyler Durden's picture

Just because it was less than half a year ago, and just because it is certain to occur again, and just because so many have already forgotten what that "end of the world" feeling was like and are back to collecting pennies in front of an out of control rollercoaster, here is, once again, the historic CNBC footage from May 6, in the minutes leading to the 1,000 point drop on the Dow Jones, when the Fed lost all control. Hopefully this will remind all those who are supposed to fix the market, yet continue to merely enforce the interests of those who brought the market to this pathetic state, just how many tens of trillions of dollars are at stake.

courtesy of Nanex

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flacon's picture

Better than real life:


Market Crash – video with live S&P pits audio


rapacious rachel wants to know's picture
rapacious rachel wants to know (not verified) flacon Sep 28, 2010 4:09 AM

oh yeah, great audio! but after watching and listening to that talking dumbass Airhead Burnett for 8:48, I think I lost a significant portion of my brain cells

How is it possible for anyone that fucking stupid, oh wait, I get it, she helps make Cramer look smart.

ZeroPower's picture

Ha nice one.

Heard the video soon after it came out, needless to say it was the most entertaining audio file ive ever listened to

scratch_and_sniff's picture

Notice the difference in his voice when he says "that move through the figure was nuts" ...he meant it, he felt it in his bones and thats why humans make better traders than machines. Humans might make the occasional fuck up, but atleast we know when something has gone horribly wrong.

A Clear thinker's picture


When this ends... it ends overnight, in the blink of an eye.

Decouple yourself, but report the events to help others prepare.

Glass Steagall's picture

I'm with you on the 'blink of an eye' thing, but this is gonna go down in broad day light. Much like a couple towers and a military nerve center did. Reality TV squared. The sheep have already been taught how to behave. Nothing to see here people. Move along.

Fucking bring it already...

A Clear thinker's picture

Yes Sir, but we need to, must, start connecting to people around us… many are not ready for the undoing… I agree it will be in full daylight… but it happens in an instant… 1 or 2 days and all things change.  Tyler, and few others have posted scenarios… all are probable… but some version is very close at hand.

flacon's picture

I've been working on my brother for two FUCKING years! Should I just give up?! He is my flesh and blood, but dang I gave him some silver, but he has a great resume complete with a Princeton edu-MA-fucking-cation and a PhD from Carnegie Mellon University! All I got is a bunch of shiny things in my basement! I gave him one ounce for each family member. And dang I ain't gonna give him no mo. 

Cathartes Aura's picture

ponder that his education has trained his mind to think in certain patterns, and any things outside those patterns are not thought.

while, perhaps, you have more room to. . . think.

maybe it will be you who saves your family - stock up your basement (foods, water, etc.) as if your lives depended on it, don't waste your energy trying to convert the minds, direct experience will be the best teacher. . . just have the basics, and your lack of surprise when it finally happens.

A Clear thinker's picture

Ask him to read Aftershock… too many first bought this book and expected to reap profits… they missed what was stated. Prediction is like throwing copper into a fire, you know it burns in vibrant color…but which color… and for how long.


They (the authors) had a full year of lead time before print, the essence of what they saw was systematic debt default, followed by currency default. On debt default, it’s hard to argue this is not major issue, on currency default; the race to bottom is in the charts.


Remember this, you’re brother is…and will always be… and it will be difficult on even the prepared… Love him and help him…


One thing about Aftershock, it ends right for all… in that we do change into something that works. IN many way’s it’s the American approach and it is the conviction that exists nowhere else.

jeff montanye's picture

ask him to look at the chart of the dow for 1928 to 1935 and then at the one for american barrick.

Buckaroo Banzai's picture

watching this made my head hurt.

flacon's picture

Watching this made me happier than a ------ with an AK!

Trifecta Man's picture

That is why if you are invested in the stock market, do not use stops.  It would also help to not be concentrated in any one stock.

A Clear thinker's picture

100% correlation... means one thing… don’t enter. This is why the retail side left, for months and months. The train wreck is known by, to borrow a phrase “The game is a foot”…

Glass Steagall's picture

Yep. Scared shitless... all I hear all day. From noobs to vets... scared shitless.

A Clear thinker's picture

Yes Sir... there was a time a short position made money, and a long position did not... when a bear roamed.. A few here have traded a short position that was spot on.. knowing it was right... then watched, and covered. I know the short numbers are huge, but something is very wrong. Not when we see 1400 to 1.

The current run up is just that... this all breaks soon. Not becuase I say it does, but because it no longer makes any sence... I buy bars... each month, and ammo.  

Glass Steagall's picture

Ain't October yet, is it? thoughts of '29, '87. I'm not that smart, but damn... WTF? And elections? Like that matters... amazes me how often I hear that. How long has it been since that effected TPTB?

And dude, I so didn't junk you.

flacon's picture

Even that old hag at JP Morgan said her employees where "Scared Shitless" because of an "elemental mistake" in their COMMODITIES DIVISION! 


Commodities my ASS! It was the SILVER they were scared shitless about! Dang nearly gave me a heart attack to read that the JP Morgan was "pissing their panties!".Bout time too!

Oracle of Kypseli's picture

I am afraid that if you are short when the market crashes instead of making a bundle, you may not get paid at all.


FEDbuster's picture

No shit, some sort of emergency powers.

DoChenRollingBearing's picture

Oracle and FED, I believe you are both completely correct.

With the correlations so tight now, I think it is imperative to act in a similar way to smart Oracle: bought productive land in Peru with water onsite.  Now THAT is diversification (babiez)!

Can't do that?  If you do not own gold, that is Step 1.

Diversification.  Flexibility.  Alertness.  The three keys to getting through this.

gwar5's picture

Good plan. I second that. Costa Rica, gold and call it another good day at the office with a margarita.

frankTHE COIN's picture

Jim Rodgers was saying the same thing in 1989 when the Japanese mkt was about to hit 39,000. He just warned to all to not wait too long to take your profits when the crash comes because they could change the game rules on you.

flacon's picture

Define "paid".... Zimbabwe PAID all their debts. 

Al Gorerhythm's picture

Getting paid ain't settlement. Zimbabwe paid its creditors, the creditors were paid in an irredeemable currency. They couldn't get squat from the country that issued it. Sound familiar?

curbyourrisk's picture

90% tax on all profits made by shorting........


I can see it now!!!!!  Obama rescues middle class by going after those nasty "truthers". 

daneskold's picture

A replay of that day is not complete without Ben Lichtenstein's call of the PIT.


Oh yeah, May 6 was Gordon Gekko's birthday in Wall Street.  The day Bud Fox bagged the elephant.


traderjoe's picture

Was that Brian Sacks (?) guy getting a Starbucks at the time? I was out of the office and (sadly) largely missed it. What ineptitude for the reporting though. The thing moved 600 points in a couple minutes and they're just chewing the cud. Yea, they can't panic, but wow.

Bring the reset on...

FEDbuster's picture

It is truely amazing how the cheerleaders are able to pull excuses out of their asses on the fly for a 10% market drop in ten fucking minutes.  If they were on the Titanic when the ass end of the ship was underwater, they would say "at least the bow is still above water, how about that iceberg we hit earlier today?"

tom a taxpayer's picture

FEDbuster - Hilarious, "bow still above water"!   Yes, truly amazing to see Erin huff and puff and blow so much hot air trying to reinflate the burst balloon. For a little squirt, she sure can be a giant blowhard.

rapacious rachel wants to know's picture
rapacious rachel wants to know (not verified) tom a taxpayer Sep 28, 2010 4:24 AM

Airhead Burnett is whatever is dumber than an imbecile. If she didn't have a pussy, we'd hunt her for sport. Metaphorically, of course.

Pillage's picture

How do we get from this to hedge fund managers 4 months later saying the market is a double sided coin with win on both sides for the bulls?

wisefool's picture

....  and the song went a little bit like this:

SNOWBALL NET: Snowball Net comms check. All stations, clock sync, (pause) impact at minus 146 days, 5 hours UTC. Standby for ACC link (could have been ACD). 

Burst of digital data| 

Burrow: SNOWBALL This is BURROW (could be Burro as in donkey). You are not secure| repeat not secure | go green | go green 

Spirit Of Truth's picture

Interesting timing for this post.

Tis the season...

Let em push you around's picture

Mr. Durden,

Did you notice the flash crash in the $RIFIN?  I know it's an index, sir, but I think I am starting to get concerned about the urine content of the clam chowder around here, and I think I just saw something strange in a VHS Bambi tape as well.

Respectfully submitted,

Let Em Push You Around

frankTHE COIN's picture

When they unleash the hounds next time, it's gonna stick.

Problem Is's picture

Flash Crash:

Market Cap Loss:  $1.5 Trillion

Constipated Look on Cramer's Face:    Priceless...

Gubbmint Cheese's picture

God I love that audio.. I sit there and smile for some odd reason.


can't help it.


Village Idiot's picture

I was there, buddy on the phone.  It was front row excitement.

Grand Supercycle's picture

S&P 500 FINANCIALS INDEX - an important chart:

Rick64's picture

That was a hell of a day.

Mydixie Wrecked's picture

Let the good times roll!

Number 156's picture

The day Skynet became self aware.

-273's picture

The commentators hardly even react. Amazing. No surprise or screaming from them at all despite the massive drop. Guess they took their meds that day.

Number 156's picture

You want to see panic?


Heres one of my favorites:

I especially love the Ron Burgundy response of the other guy.

novanglus's picture

I would guess minus 273 degrees Celsius, the temperature known as absolute zero, when all movement ceases.