Plunge protection teams "work" at most for only the shortest of terms. Pumping money into stocks that are losing value might succeed in halting that decline, but it does nothing to change the underlying fundamentals. And China's economy (and financial markets) are in trouble because of those fundamentals.
Plunge protection teams "work" at most for only the shortest of terms. Pumping money into stocks that are losing value might succeed in halting that decline, but it does nothing to change the underlying fundamentals. And China's economy (and financial markets) are in trouble because of those fundamentals.
Beijing can halt the slide and even generate a market rebound. What it cannot do is prevent market forces from restarting the decline a few months down the road.
Plunge protection teams "work" at most for only the shortest of terms. Pumping money into stocks that are losing value might succeed in halting that decline, but it does nothing to change the underlying fundamentals. And China's economy (and financial markets) are in trouble because of those fundamentals.
Beijing can halt the slide and even generate a market rebound. What it cannot do is prevent market forces from restarting the decline a few months down the road.
Yes, the Invisible Hand!