SPDR S&P 500 (SPY)

[imiloa]

re: "propping up stock markets is not the best form of economic stimulus"

esp if the SSE valuation truly is under 2500, being >20% lower,
which i feel it must be, given the SSE was at 2300 last october
as the irrational exuberance run to 5000 began.
and, theoretically, their economy is weaker now than last summer.

if the above is true,
then trying to prop the market up above 3000
is like trying to hold back the ocean forever.

eventually a big storm is gonna come
that will overwhelm your seawall...
and then all that money spent was wasted.

given that the Chinese are very shrewd with money,
i suspect they know this,
and are simply propping it up periodically
so the retrace back under 2500 is more gradual
instead of another steep plunge.