Well, I know your frustration about a governmental officials short the market in public , and which is not his job function.
As you know each share you sold , the government get 20% of your profit , and it is called long term capital gain tax, of course , if you do not sell , the government get nothing. So, to generate enough
budget surplus to show the public a nice book, the government need to take its profit from time to time, i.e take the long term capital gain tax from your profit, which is 20% of your profit. When the market reached to a certain level, AG will come to the public to short the market by saying that he thinks the market is too high , he may hike the rate ...etc to generate a fear to the general public and force a panic selling , and you know billions of tax dollars went to the pocket of government through what is so called long term capital gain tax. Once , the market hit a certain low level, the government will long the market again so that you can make some money and the government can get its profit again in next round of sell off. So ,
when the market drops to a certain level, AG will go to the public and claim that he saw no signs of inflation and that the stock market is in a reasonable level, then , the stock market climb again. Once the market reached to a certain level, AG will go to the public again and sing the blue song, and again force panic selling ...etc , the same thing just repeat over and over again , and the stock market goes no where but just took circles. Well, what can I say ? That is life , the government wants to play the market and get your shares of the profit !!!! Did you see we have a lot of budget surplus in recent years, and the government is stingy to return part of it to the people , the people who elected them to the government by votes !!!! |
