Stocks Slide Less than 7%

Stocks were down again, but less than 7 percent on the Shanghai Composite Index. The 6.4 percent decline is a long one-day drop for stockholders, but there are two good things about the decline. Stocks are now within 25 percent of a sustainable level, making a panic less likely. Having the afternoon slide stop before 7 percent (even if state intervention was required) makes the removal of the market circuit breaker look like a success.