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"We should be down big today, but not 1,000 points. This is an equity market structure issue, there's no major problem going on."

http://news.bbc.co.uk/2/hi/business/10101581.stm

Doesn't sound like a panic to me.

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Yea, it's appearing more and more like a glitch, human, structural, or otherwise.

However, the sellers were real -- and increasing. I think there is a danger that people will see it as only a glitch and not the beginnings of trouble. The glitch might mask the true sentiment.

Why would you want a panic? The market is built on confidence, we want the market to have confidence...

To some degree, I agree with you. The stimulus was a bluff that was meant to inflate confidence and bring back spending. The market is a strong signal that, if in panic mode, may arrest gains to consumer confidence. I don't want a panic because it may lead to recession/depression round 2. However, I also believe that, if round 2 is inevitable. I'd rather fall from a lower height.

But not necessarily false confidence.

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