A Black Swan comes home to roost

(Via the Drudge Report)

Longish and somewhat difficult to understand if you don’t have some familiarity with how stock markets work, this is still a good explanation of how last week’s stock market plunge wasn’t anyone’s fault. The market was poised for a disaster, and one little trade set of the chain reaction that led to a 1000 point drop in the Dow.

If you think we couldn’t have a Black Swan event in something like the power grid, our political system or any of the other complex systems that surround us, you just haven’t been paying attention. They will happen–will you be ready to ride it out?

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