If anyone is gambling, it is the Chinese gov't. The gov't is trying to maintain a currency peg that is almost certainly overvalued, and has become increasingly costly to maintain.
If you have a mil, you don't mind to gamble 10,000.
If the peg collapses, ...
To win, you have to know yourself and your enemy. Obviously you don't know the enemy.
the gov't bought stocks last week that are estimated to have cost US$15 bil. Judging from the 7.1% fall in the market on Monday, and the additional 2.8% decline last night,...
They hedged their positions in the futures. It is them who was the seller. Obviously you don't know trading!
The gov't is taking one heck of a gamble also with regard to HK's free market reputation.
So you want HK market to become zero to satisfy your little economic theory?
This reputation has been badly damaged, and according to Business Week will take years to repair
What do they know about Chinese?
Meanwhile, HK will find it more difficult than previously to attract outside capital for new investment.
Don't go there. I will ask him to come here to invest DELL. :-)
The gov't has taken 3 big gambles, and my scorecard shows a record of 0-3.
Your scores are meaningless. If they devalue their Yuan, you will cry.
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