Thursday, August 11, 2011

Are the Markets Undergoing a Criticality Accident?

Watching the market action over the last week, the action on the equity market charts reminds me nothing so much as what we call a "criticality accident" in nuclear engineering. This is when the control systems for a critical system (typically a nuclear reactor) fail.  Power excursions begin, resulting in wild power fluctuations and, if control is not regained, leads to the destruction of the critical system and leaves behind one hell of a mess:

Just an observation.  Enjoy the ride.

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