Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Paul Berliner who wrote (5544)	8/14/1998 12:25:00 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 9980

Paul, I view the action taken by HKMA last night as the beginning to the final collapse of Asia. A few days ago, they announced that they have something up their sleeves and warned speculators that they will be punished. I am deeply disappointed by this type of manipulation. Ramsey

To: Paul Berliner who wrote (5544)	8/14/1998 12:58:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 9980

Paul, Should a government step in when outside forces are putting their economy into chaos? What is the role of government when a disastrous event occurs that will harm the country? In the US, is it proper for the SEC to stop trading when the market reaches certain levels or should the SEC allow total collapse? Is it proper for the Federal Reserve Board to set interest rates? Was it proper for the US to buy yen in an attempt to stop the selloff? Was it proper for the US to back loans to Chrysler? Should our government subsidize companies in foreign development? Are tariffs, subsidies, price supports, etc. to be eliminated? Government interference in all forms of commerce is common. Should HSBC be allowed to collapse? 30% of the HSI? Pension funds? Was the selloff due to poor performance by the listed companies? Or to a sudden weakening of economic conditions in Hong Kong? The obvious answer is no. The selloff was panic caused by market manipulation. They used a small amount of money and bought across the board. No particular company. It put a stop to the selloff and the market has rebounded. If the market is truly worth less than it's current value, it will turn down. If their effort fails, the officials will be damned. If it recovers, they will be praised. Time will determine the wisdom of their actions. I personally hope the short sellers got burnt. FWIW, Ron