Friday, July 10, 2015

No problems in the stock market?

After wiping out one third of the value of the stock market in China, there was a rebound.  Immediately pro-government newspapers proclaimed: No problems in the stock market!

Really?  Prior to the recent fall, the stock market doubled in value while the Chinese economy was slowing down.  The stock market was overheating because people borrowed heavily to bet on the market rising.   The government resorted to extraordinary measures such as forcing people to buy and forbidding people from selling in order to prop up the market.   How can people claim that there are no problems?

Of course, we all know that the pro-government newspapers are just mouthpieces of the government.  They have no choice but to say things to support government policies.  There are no surprises there and we learn nothing new. 

However, there are many pro-establishment types, politicians, businessmen, and common people alike who seem to buy that.  There seems to be only two possible conclusions.  Either they are really not smart enough to see the reality; or they are saying things they do not believe in. 

Either way, it does not paint a favourable picture of them.  A society with too many of such people is perhaps not really ready for true democracy. 

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