The Model Room ยท MR-039
THE MODEL SOLD SEVENTEEN BILLION IN NINE MINUTES. THE EXCHANGE STOPPED PRINTING TICKETS. HE KEPT A CARBON COPY.
I have the carbon copy. On October 19, 1987, a sell order for nine million shares hit the market, not from a person but from a model, erasing $500 billion in value in hours. The market's crash was triggered by a failure of the portfolio insurance strategy, exacerbated by automated trading.
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