Well, it goes without saying that the more measures you are able to create the more possibilities you have in order to skip the difficulties. And the examples of two crises happened in 1929 and 1987 prove all these words.
As for the measures in 1987, they were done at high right level and in very good way. At the beginning, the circuit breakers were created for avoiding panics and problems in stock markets in 1988. As for their usage it calls a lot of argues even now. Many experts say that the prices rest the same and sometimes even get soaring. Well, it is an open question.
The next point was enlarging the communication between the investors and the stock market itself. Here is an example: the meeting between the heads of the Federal Reserve Board and Security and Exchange Commission; and the aim of such conferences is forecast the next problem and chaos.
Also, one more invention – is “squawk box”. It helps people to be aware about the changes and progress of the company. Such boxes are supplied positively to the whole situation.
In 1987 portfolio insurance became a forceful investment theory which was based on the Black-Scholes alternative pricing rule. This theory tried to copy a put decision in stocks. This very information was given in the articles of 90ies.
It goes without saying that Federal Reserve that was the helpful point for stocks in 1987. It wasn’t so harmful because Federal Reserve shifted rapidly to ease monetary policy. Those were the first actions of the government in order to prevent the crash in 1987.
And how it was predicted Federal Reserve played very important role in the creation of new ways from the difficult situation and the actions of government are improved in quit positive way.

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