Method for Stronger BitUSD Peg

[teenagecheese]

...or to offer another question. Is anyone else worried about how far the price feed is off from the order book? Almost 5 bts (http://www.bitsharesblocks.com/assets/asset?id=USD). That's not o.k., right?

[teenagecheese]

I noticed the BitUSD peg is currently not working so well and I feel like that will keep happening, especially when people expect bitshares price to change rapidly.

Could you just code it so that BitUSD trades can only be executed within $.01 (or whatever) of the price feed, that way people are always guaranteed within 1% of the dollar?

Maybe I'm missing something, please comment.