Stock Market Collapse Caused By Either Greek Debt Crisis Or Typo

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I kid you not…

CNBC reports that the selloff that dropped the Dow by 1,000 points before a late rally may have been caused by a traders typo:

In one of the most dizzying half-hours in stock market history, the Dow plunged nearly 1,000 points before paring those losses–all apparently due to a trader error.

According to multiple sources, a trader entered a “b” for billion instead of an “m” for million in a trade possibly involving Procter & Gamble, a component in the Dow. (CNBC’s Jim Cramer noted suspicious price movement in P&G stock on air during the height of the market selloff.

Of course after hashing through the whether or not such a error occured, they changed course – in the same article no less – as to what it all really means…

The massive selloff, which began shortly after 2 pm ET, amplified concerns about the spreading European debt crisis as the approval of austerity measures by the Greek Parliament sparked renewed rioting in Athens.

“There is simply a growing recognition that Greece has got to default,” banking analyst Dick Bove told CNBC.com. “The riots in the streets showed the decision to repay the debt was not going to be made by the people in Germany, France and Switzerland–it’s going to be made by people in Greece and they’re not going to repay it.”

There also is a growing sense that any collapse of Greece could trigger a wave of defaults across Europe and even the world.

When an EU country teeters on the brink of defaulting on its debts, naturally your first instinct to dump all of your stock in blue-chip consumer product companies, right?

Maybe the Greeks can repay their debt by buying lots of Proctor & Gamble products. That’s a win-win for everyone…

"They're killing our planet. They're killing our planet."
Reading The Dow Jones Industrial Average In Greek