“The measures over the past weekend are not enough to stem the downward spiral” and their impact will be short lived if not followed by measures for supporting the real economy, Ting Lu, chief China economist at Nomura Holdings Inc., wrote in a note. “Without additional and more aggressive policy stimulus, these stock-markets-focused policies alone have little sustainable positive impact.”

Eoin Treacy's view

Earlier this year, it looked like there could be a run on a large number of regional banks. The Federal Reserve waded into the market and backstopped every deposit. That was a strong clear signal that no one should worry about the security of their bank accounts. The sector rebounded emphatically over the next several months despite the Fed continuing to raise rates. Did the Fed’s action contribute to moral hazard? Yes. Was it the right decision at the time. Also yes.