QUOTE (SoxFan562004 @ May 6, 2010 -> 04:34 PM)
Can someone with a little experience explain the P & G thing? CNN glossed over it because it wouldn't be as scary. It sounded like the P & G stock fell (falsely?) a ton and it triggered a lot of computer programs to sell off.
That's basically a very good summary of it.
Somehow, there was a faulty price processed for P & G.
Lots of electronic systems have settings that say "sell if it gets to this price". A faulty low price would trigger all of those sell orders.
Then, once people realized something was wrong, people would go in and start buying.