Barry, they've changed traders' (and then public) mindset, short-term sure, but it was important for the "authorities" to make sure a '87 does not repeat, even if in two or three days. And, they can unvind actually for a profit, if they know what they're doing. It's just market manipulation which is illegal for everybody ex-goverment itself.
It will probably not help in the longer term, and can actually even do harm, but nobody can prove that one way or the other, so they probably justify it for self by saying 'we averted immediate panic".
Goverment intervention is nothing new, the particular method, though, is very unconventional and raises questions, cause, if they keep doing such things - it is no longer even remotely "free markets". Why not call Gorbachev then to become US president, etc.
Joe |
