For its own stock market, the latest intervention by the People’s Bank of China (PBOC) was too little and most importantly too late. Because the bank chose to cut rates after trading stopped in Shanghai on Aug. 25, the Chinese market crashed another 7.6 percent, a tad higher than the regime’s official growth target.
Western markets were happy that somebody did something, and stocks rose across Europe and the United States. However, the PBOC’s latest reduction in interest rates has nothing to do with the economy and also not with the stock market.
