Friday, March 20, 2009

We will be fine soon, if you act...

We are still in the financial turmoil, which no one knows where and when the end will come. Government has bombarded the market with various measures, but it seems that all the missiles are powerless. Unable to move the market. The market by itself prefers to stay in the 'painful' comfort zone, instead of risking themselves to another unseen financial monster. By nature, humans are risk-averse. People do not like risk. The risk-aversion is more heightened this time around. Based on economics theory, fiscal and monetary measures should have an impact in the market. Indeed, it has impacted the market, but it was very slow. The market has been bluffed by its own incentives. The players are no longer trusting others. China said that they are afraid of the sustainability of US Dollars value in the future. And Barrack Obama responded to China's fear by claiming that US are still the safest place in the world to invest. Whose statement is more likely to be true? No one knows. Probably, both are wrong.

In terms of economic structures, our times is much better than 1930's. Markets are more matured. Hence, once the fuel (market forces/confidence) fills the machine (market) again, everything will recover. Philosophically, it will happen.

When will you believe yourselves again, Market? Laissez-faire, as what Adam Smith said.

Help Government saving the whole economy. Open the money tab. Let the money flows. Government policies are useless if the people are not responding.

2 comments:

  1. Hei, I am Mitchell YANG! From GH 315
    Do you still trust the recent financial system?
    My msn: yangbin03@hotmail.com

    ReplyDelete
  2. Hi Mitchell...

    I think I could only say that I partially trust the recent financial system. There are parts that need adjustment. Hope the upcoming G20 meeting will bring significant result related to this matter.

    How is your opinion? ^_^

    ReplyDelete