Circuit breakers just delay the inevitable and mask real risk. Prices need to find their level鈥攑ausing trading only traps investors and creates pent-up panic for the reopen.
Circuit breakers don鈥檛 erase panic; they bottle it up. Freezing markets delays real prices, masks risk, and makes the eventual move uglier.
Circuit breakers stop algorithmic panic selling from wiping out everyday portfolios. They give the market a crucial timeout to realize the sky isn't actually falling.
Circuit breakers just pause trading and block prices from hitting their true lows, hiding the real risk instead of letting the market clear.