Pakistan, A Model for Free Markets
Aug. 28 (Bloomberg) -- Pakistan set a floor for stock prices on the benchmark exchange, moving to halt a plunge that has wiped out $36.9 billion of market value since April.
Securities can trade within their daily limit of 5 percent ``but not below the floor-price level'' of yesterday's close, the exchange said on its Web site, without giving details. The Karachi Stock Exchange 100 index capped a six-day, 16 percent slump to 9,144.93. Trading starts at 9:45 a.m. local time.
The only question I have now is: Which knucklehead U.S. politician will be the first to make a similar call over the next month or so?
Hat tip to Calculated Risk.