The Great Glitch Story Not Getting A Great Reception

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Some of the wiser voices on the internets are pointing out that the Great Glitch story-line doesn't exactly pass the smell test.
Eddy Elfenbein at Crossing Wall Street says:

One more word about yesterday: The sell-off was not caused by a computer glitch.
The sell-off was already happening. The glitch was in the accurate reporting of what was happening. This is Wall Street going through the looking glass. If stocks are going down, and no one reports it, are they really going down?
When the computers finally caught up with the trades (see video), some traders thought it was an obvious misprint. No, everything until that point was incorrect. Only when they learned what they really had been doing did they start to panic. At which point, stocks started to rise.

And over at the Big Picture, Barry Ritholtz agrees:

First off, computer errors didn't cause the sell off -- they only delayed the reporting of the trades.
If anything, these delays made the sell off look more orderly than it really was. Contrary to what you may have read elsewhere, the glitch only made the selloff look more mild (orderly and less severe) until it turned more wild as the delays spooled out and unwound. I have seen several early news reports and comments that got this exactly ass backwards.
Anyone who will uses this as a false excuse for Tuesday is a weasel.


Wall Street Through the Looking Glass
[Crossing Wall Street]

Around the World in 24 Hours
[The Big Picture]

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