Your naivety is amusing.
A basic i7 based box could easily handle thousands of transactions a second with sub 100ms lag; yet we are to believe that all these exchanges are running some relic 386 box running Windows 3.1. The exchanges are not there to serve the Bitcoin community, they are there to engage in price manipulation (likely collusive in nature) for their own gain. When they cannot move price action in a direction favourable to them they cry DDOS to allow them to pull the rug from under their customers and scalp some easy money that way.
Wow, you are an idiot, your idiocy is amusing, you have absolutely no idea what I said. You seem to think I am excusing the exchanges for being utterly incompetent? Perhaps I think that the exchanges are completely innocent and do not engage in price manipulation? I suggest you stop putting words in my mouth. I merely mentioned DDoSes and I didn't even mention DDoSes at GOX.
Are exchanges getting DDOS'ed? YES. Are they also utterly incompetent and operating below capacity? You can bet your britches they are. Did I say they aren't? No. Did you assume I did? Yes. Did I make ANY statement in regards to the ratio of performance issues caused by DDoS vs undercapacity/incompetence/manipulation? No. Did you assume my opinion regarding said ratio? YES. When you assume, you make an "ass" out of "u" and "me." Do you get it? It's a funny joke. Ha, hah. Now don't do it again.
THIS IS A FREE MARKET AND INCENTIVE MECHANISMS ARE AT WORK. MTGOX MAKES MONEY DURING PANIC SELLS.
OF COURSE they have a massive incentive to continue operating below capacity and causing massive panic sells. They make more money that way.
The only incentive they have to operate at or above capacity is to the extent that people will leave mtgox for better-performing exchanges, and this is simply not happening.
Again, you are an idiot, in this case I agree with you 100% regarding the incentive mechanisms at play here, yet you made assumptions and put words in my mouth. So I had to take you down a notch
dumbass.