Do not worship the Chinese stock market in Taiwan as a teacher

 [Classics] (1988.10.26) visible hand of the Taiwan stock market in Taiwan's stock market price
volume increased significantly. twenty days, a greater volume, the stock market index rose! this change to the local newspaper to spend a lot of He of course, a big greeting special. Unfortunately, from an economic point of view, this is a tragedy, on the benefits of Taiwan's economic prospects have not the slightest! This is because the stock market in recent days there turned up, not the market free operation, but the government behind the scenes to forced ; nominally How, this government intervention will not benefit. I can imagine four possible results, and none of which is desirable.
The first possibility is the stock market should be down, but large wealthy consortium has revived the energy; the stock market then was entrusted into the sky, and this increase is not temporary. This is possible; However, some large well aware of their own,cheap UGG boots, they have so many high-priced stocks, the surface priceless, once the sell out, the stock market will never led. Therefore, their their own However, the function can not fail to set aside the stock market. For example, can not freely sell the stock market, how can we use the approach to fund-raising rights issue? This move,UGG shoes, if not possible, no matter whether the stock market not to pursue.
second possibility, Taiwan in the real value of the stock market should not have more than five thousand six thousand points of index, but because of the large prop up the market again blind into the public investors herd instinct, can also see the rising market to buy. If this increase is the support of the public shareholders are ignorant, would not be a period of short-lived. Thus, large families will feel small they really were rich in the stock market crash mm before if they like.
of such self-deception but fun extreme situation,UGG boots clearance, the downside is that misled investors in consumption and investment intentions. They overestimate their own wealth, lavish meals a day, also can not support such spending, such an investment. So one day, the stock market will figure dagger is poor, falling badly beaten. At that time, because the big fish eat too much, too far under investment, investors unable to stand ,Discount UGG boots, bankrupt, have the property sold the property, would not foul out?
third possibility is currently prop up the market only a temporary success, had not a half months in January, the stock market has continued to tumble. big big sigh so unlucky , in the the stock market really is down too much, and even lower its real value. This may be due to declining eligibility limits scared investors, or are ignorant of the cattle shifted, unknown so to run around, run too Speed too far. In this way, the stock market by the government behind the scenes advice, allocation of chaos Reformed, prevented the decline should not fall further, so that officials and people happy.
stock market down market structure and regulations, it is clear there are many problems to solve. Ministry of Finance should take the stock market crash for some consolidation. but this time to support the market has covered up the problem, people think the Government escape. Third, the large group This is obviously to help the government a favor, though we are all good, but this is not what is collusion? the sun is no free lunch in the future how the Government will repay what these large?
said to support the market, but the market free but was seriously damaged. see longer term, domestic or foreign investment in Taiwan would think? Government assistance to the Government want them to things? That is, even if the Government, business is the best two sides that
Yes, from the Taiwanese government in recent months on the market's handling of view, we economists outside where development is over-estimated. turkey imports, causing chicken farmers ***, the Government has yet to amend the legislation the import of agricultural products to be around a lot; now *** shareholders, the Government has no clear right or in obligations, plays the role of heroes, the visible hand out. It seems *** in Taiwan will become a practice. In future, the stock market or other market plummeted, the Government does not justify a helping hand extended, how can it? Even today, market players are forced and do the Related articles: