Sort of the same thing happened in 2008. Normally what happens is that when the market drops, you have more people that want to buy at a lower price.
The trouble is that when things go into a panic it does not work this way. So the price drops suddenly, instead of thinking this is a great deal, I will buy, you do nothing, so then the market freezes and things just get worse.
Also if it turns out that I don't have any cash, and I cant buy, things get really bad. I have no cash, because the market is crashing so I cant buy anything but because the market is crashing I have no cash.
In 1987 and 2008 something like that happened, and what the Fed did was to flood the markets with cash so that people would start buying and stabilize the markets.
This what happened again in 2020 and 2021.
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