Washington's War With Wall St. to Blame for Panic Selling, Scott Bleier Says

Traders, exchanges and regulators are still trying to figure out what prompted Thursday's near 1,000-point drop. One theory espoused by CNBC claims the precipitous drop was the result of a ‘fat finger’ mistake triggered when a trader accidentally sold billions of shares instead of millions.

Scott Bleier, president of financial advisory firm Createcapital.com, doesn't buy it. “There's no trading error. In my opinion, I think it’s a lie,” he tells Tech Ticker in this clip.

Bleier believes the sell-off was the result of a “perfect storm” created by Europe's debt crisis, a market that’s come too far too fast, and a government that has suddenly turned against Wall Street.

Bleier says the battle over financial regulation reform has become a, “war between Washington and Wall Street now,” with Wall Street flexing its muscle of late, intent on showing lawmakers who’s boss.

Compounding the problem is news that the Senate has struck a deal to put an audit of the Federal Reserve to a vote.

The deal, formally agreed to today would:

“Require the non-partisan General Accountability Office to conduct an independent audit of the Board of Governors of the Federal Reserve System that does not interfere with monetary policy, to let the American people know the names of the recipients of over $2,000,000,000,000 in taxpayer assistance from the Federal Reserve System, and for other purposes.”

Bleier thinks an audit would destroy confidence in the financial system and potentially cause a “run on the banks” that took federal assistance in 2008-2009.

In other words, brace yourself for more volatility.