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It's curious that there's only intervention in the markets when they're tanking. If the underlying reason for the intervention is to prevent irrational behavio
by georgebarnett 11y ago
It's curious that there's only intervention in the markets when they're tanking. If the underlying reason for the intervention is to prevent irrational behaviour then where was the regulator when the price was going up like wildfire? Surely it should work both ways?
- lkrubner 11y agoThere are many, many regulations that limit the rise of the markets, the most obvious being the limits put in place on credit and margin. All Western governments intervene in the various stock markets, everyday. That's been true since at least the 1930s. The interventions are sometimes direct, but are more typically indirect. These last 40 years there has been a movement afoot, especially in the English speaking nations, to weaken the controls that limit the spikes, up and down, in the market. There may be some advantages to this policy, but there are also many disadvantages.