Computers Play 'War Games' on Wall Street

Understanding last Thursday's 'Flash Crash'

Monday, May 10, 2010

trader and Dow Jones graph for May 6th, 2010 (Photo by Mario Tama/Getty)

In the 1983 film, "War Games," a military supercomputer with a personality brought the world to the brink of nuclear annihilation. Today, we’re looking at last week’s “Flash Crash,” during which the Dow Jones Industrial Average dropped just under 1,000 points in under an hour and then bounced nearly all the way back.

We pose a question to two financial experts: is it possible to protect our economy from a financial version of a War Games scenario?  Joining us is Bill Brown, Law professor at Duke University and formerly the global co-head of listed derivatives at Morgan Stanley. We also turn to our friend Louise Story, Wall Street and finance reporter for The New York Times.  

Guests:

Bill Brown and Louise Story

Produced by:

Hsi-Chang Lin

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