Tuesday, September 8, 2015

The Cost of a Stock Market Bailout

A Goldman Sachs analysis reported at CNN estimates that

The Chinese government has spent 1.5 trillion yuan ($236 billion) trying to prop up the country's plunging stock market . . .

If the analysis is correct, the cost of the stock market bailout is not as large as some had imagined. China might feel that it is money well spent if the central government controls a 4 percent share of the total stock market halfway through the crash.

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