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Technology Stocks : DELL Bear Thread

DELL 117.44

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3:59 PM EST

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To: Bilow who wrote (1801)	9/3/1998 11:01:00 AM
From: Geoff Nunn	Read Replies (1) of 2578

Carl - *OFF TOPIC* I completely agree with you the Chinese gov't is unaware of the consequences of its actions in HK, and it should have left things alone. It was not government intervention that enabled HK to become one of the most prosperous, wealth- producing societies in the world. It was just the opposite, i.e., lack of intervention by the British gov't. To their everlasting credit, British authorities who until recently controlled HK were wise enough to take a hands-off policy and let the free market work. The damage the Chinese gov't has done to HK's reputation is incalculable. A few months ago the gov't intervened in the HK property market to suspend certain land sales. The official reason was to help "stabilize" land prices. Now it is intervening in the stock market, not only to take equity positions but also to place restrictions on private transactions. In the link you posted to me, it is reported that the gov't is now "clamping down" on short sales of stocks of certain companies. Apparently, the gov't finds it ok for asset prices to fluctuate provided they only go in one direction - up! There can be no mystery why HK acquired one of the highest living standards in Asia. It did so in part because the British established essential prerequisites for economic growth. One of these was a system of private property rights enforced through the rule of law. This helps account for the fabled ability of HK to attract capital. Now the current gov't is essentially dismantling this system. Every step it takes to intervene is one more infringement upon the property rights of someone. Unfortunately, HK seems to be quickly reverting to the historic Asian model of rule by man not rule of law. In most countries this is a formula for stagnation. In Asia it was a formula for stagnation. It shouldn't take a rocket scientist to see this. The Chinese gov't now has about as much credibility as a dieter at a Texas barbecue. Geoff

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