- 25 Aug 2015 18:09
China announced a rate cut overnight although I doubt that this will do much for Chinese share prices since the prices are still so high. Cutting rates to save stock prices is kind of a dumb idea anyway. They seem to have also dropped the idea of the state buying shares (after dumping 400 billion dollars into that hole), but that was a far stupider idea than cutting rates which at least has a more useful effect on the real economy.
The Chinese don't seem to have any coherent plan for dealing with this - I wouldn't be surprised if they tried government share purchases again, though the effect would only be to shovel more money into the hole and bail out the idiots who bought into this bubble.
U.S. and european shares are up and the U.S. posted strong jobs, housing, and consumer confidence numbers, which is encouraging for the U.S. economy