From Paul Sheard, chief global economist at ratings company Standard & Poor's, who says that it is more appropriate to look at the 1960s Japan experience rather than the 1990s.

  • He cites commercial bank funded stock buying, and "after their money ran out: a second vehicle to buy shares funded 95% by the Bank of Japan .
  • Says "The interventions ... amounted to about 6% percent of the market, eventually worked".

Note the time scale .... this is not a day-trading idea :-D

Bloomberg have more:China's Turmoil Could be Just a Blip, If 1960s Japan Is a Guide

  • Like Japan five decades earlier, China is still at a middling stage of economic development, meaning the economy has significant room to grow.