On Thursday this past week there were a few attempts at crisis management that should go into textbooks (as well as history books) everywhere in years to come as: Crisis Management 101.a – Lessons in Ineptitude.
The responses as to settle the angst in an ever-growing skeptical, as well as frightened investing class was not only inane as demonstrated by the responses (or better yet; lack there of) given at the NYSE by way of “answering” as to why it halted its operation for nearly 4 hours.Was only outdone by what many view as the near insane when one views the steps taken in China to “calm” their markets.Those steps?
Not only did China halt trading in as many as half (reports vary from around 30% to as high as 50%+ depending on the index) of all listed companies trading on their indexes. It’s been reported not only has selling one’s shares been publicly demonized – you can now be arrested with the threat of imprisonment. Add to this, it’s also been reported: if you sold previously this year – you have to buy it all back. Now! Or: see previous sentence. However, “you” is still subjective at this moment. Exactly who at this time is not entirely clear. (i.e., personal, broker, company, etc., etc. Maybe all?) We’ll have to wait and see. Or – till they come to their door. Literally.
Wednesday the Asian markets were once again in free-fall. Japan’s fell breaking the all important psychological level of 20,000. Both China’s large and small caps fell even harder. This after the government stated unequivocally; it would take extraordinary measures to combat the selling frenzy. And – It didn’t work. Only until it launched into the measures I outlined above did the markets in Asia seem to hold from going over the precipice in its entirety. Will it hold? Who knows. Yet, the one thing we do know is: it’s only holding because in effect for all intents and purposes not only is it illegal, it’s backed with the very real threat of imprisonment – to sell.
Is that how one instills confidence? It instills something – however the term isn’t anything resembling “confidence.”
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