Yesterday Citigroup stock analyst Prashant Bhatia said E*Trade had a 15% chance of going belly-up. Does Citigroup have a new mark-to-model price discovery process? His call was effective, causing a run on E*Trade stock, while panicked customers dumped their portfolios to get cash.
The selling yesterday had the feel of "who is selling at these prices?" It was indiscriminate and panicky.
Now you know why.