PGN Engery, turton lobbied for, flash crash this morning 90% loss they corrected

Posted: January 10, 2011 in Uncategorized

God help the day i ever have to look back and explain this to anybody, more so so i cant deny it i guess. Ashley turtons car gets blown up in her garage, the morning of a merger deal, then the stock plummets and SEC saves it some how ? article below…fuck

 

O yea and now its the largest energy company in the us…

 

Latest Flash Crash a Fat Five-Fingered Slap to Investors

Stock quotes in this article:PGN

NEW YORK (TheStreet) — There’s been a lot of talk about “fat fingers” this year, what with all the mysterious flash crashes bedeviling the best minds of the markets. This week, after the latest flash crash hit shares of Progress Energy(PGN_), investors may have reached the point where the only fat finger they’re thinking about is their own middle finger, being raised in the face of the SEC and the exchanges.

There were actually two mysterious news items this week about Progress Energy.

On Monday, more than 4,000 Progress Energy customers were left without power after a snake slithered into a switch and shorted the circuitry. A faulty underground cable line sparked a power failure, and while crews were at work, a snake crawled in and shorted the circuits.

In the curious case of the snake and the circuitry, Progress Energy restored service in about two hours.

Investors, on the other hand, are still left in the dark about the latest flash crash, when shares of Progress Energy slid from $44.50 to $4.57 in a millisecond on early Monday afternoon, making the company’s stock chart look like a Robert Downey Jr. EKG printout during a night of partying.

These days, the slithering is coming from the exchanges and market regulators. There was much fanfare about the new circuit breakers after the events of May 6, yet the Progress Energy “mini-flash crash” shows that it’s the markets breaking down and the circuit breakers still malfunctioning. It’s becoming a bigger reason for Main Street investors to give up on competing with the high frequency trading monoliths now in complete control of the U.S. markets.

Let’s leave aside for the moment the growing conspiracy theories about the high frequency trading algorithms that are profiting while Joe The Investor gets shafted. Other than to note that the fact that the PR wings of the exchanges are now in the business of having to dismiss the high frequency trading conspiracy theories is enough to prove that the markets have a big problem on their hands if they want to keep Main Street money in the markets.

It’s not too much of a stretch to make this analogy: many people are afraid to fly, but few are afraid to fly because they doubt the control mechanisms of the air traffic control system. Many investors have their doubts about the latest biotech stock, but few are afraid to invest as a rule because they don’t trust the markets to function effectively. Well, that’s not the case anymore with the latest flash crash in shares of Progress Energy.

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