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> I'd just like to ask why in situations like this, governments tend to intervene? I'm not an economist either, so consider this a case of blind leading the bl
by discardorama 11y ago
> I'd just like to ask why in situations like this, governments tend to intervene?
I'm not an economist either, so consider this a case of blind leading the blind.
My interpretation is that market crashes lead to public turmoil; and given China's history of revolutions, the government isn't too keen on a large, unhappy public. I've read that a lot of people entered into the market late, and often borrowed funds to do so (I have no citation, unfortunately). I bet those people would be pissed if they lost all their money and then some.
Reminds me of the last dot-com crash. As the saying went, when grandmas start jumping into the market chasing hot stocks, it's time to get out. (No offence to any grandmas out there!). I have a feeling the same was happening in China recently.