Sell-Off Was Another ‘Flash Crash’: Barton Biggs

As reported by CNBC’s Katie Little, Barton Biggs, a managing director with Traxis Partners, dismissed Thursday’s sell-off as “another Wall Street flash crash panic” and said that, despite the recent spate of weak data, he still believes the U.S. economy could show real growth over the next couple of quarters.

“I’m sorry I can’t get bearish here,” Biggs told CNBC Friday. “There’s too much fear and too much panic selling. There’s too much momentum-oriented selling, and I don’t think the global economy’s going to collapse.

Tight stop-loss limits and high frequency trading contributed to the selling once the market started to cascade downward, Biggs said.

“This another Wall Street flash crash panic, and I think it’s overdone,” he said. “Any long-term investor ought to be buying stock.”

Biggs said he remains optimistic about the U.S. economy going forward, citing a pick-up in retail spending in certain areas, good news in Friday’s employment numbers, and the rise of real incomes due to low inflation as evidence that the economy could exhibit growth during the next few quarters.

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