The stock market rallied 5.3% today with
current talk that the government intervened. Chinese also apparently cut its
holdings of US treasuries to raise dollars needed to support the Yuan.
The Chinese cannot decide what they want or
rather they cannot let go. They want a matured economy but are too frightened
to let the markets decide. This makes them seem erratic and indecisive. None of
those qualities are investor trustworthy.
What the Chinese don’t seem to understand or value is that
trust is inherent in a market. Once a market loses trust in a system, there
will be no way to get it back. This is a fundamental of human life.
None of the damage they have done is irreversible
and the implications are yet to be fully realised.
No comments:
Post a Comment