"1987 Black Monday" Reenactment: Group Trading Reversal, Liquidity Shock, What Happened Next?
The Federal Reserve urgently cut interest rates by 50 basis points and implemented quantitative easing to inject liquidity to "rescue the market." Ultimately, the significant drop in 1987 gradually calmed down, and the risks did not spread to a larger scale, but the danger lies in the possibility that the crash could become self-reinforcing and evolve into a credit crunch.