The Rising Influence of Rising Affluence

[DewDiligence]

China suspends stock market circuit-breakers (which increased fear and was thereby counter-productive):

http://www.wsj.com/articles/china-securities-regulator-to-suspend-new-circuit-breaker-mechanism-1452179748

China’s securities regulator announced a suspension of a new “circuit breaker” mechanism designed to help stabilize the stock market, saying the system didn’t work out as expected and instead exacerbated stock losses.

In a statement issued late Thursday night, the China Securities Regulatory Commission said the circuit breaker system will be halted starting Friday. It didn’t say how long the suspension will remain in place.

The mechanism, first announced last month, only began operating Monday and had already been tripped on two of the four days of trading. A heavy selloff caused China’s stock trading to shut down after a half-hour Thursday.

I have no idea what Friday’s trading on China’s markets will bring, but circuit-breakers clearly weren’t the way to dampen the selling. The "suspension" now in effect may actually be a termination.