Will The Stock Market Crash Come Back? This Problem Is Hard To Judge

What happened in the past is about the NASDAQ bubble of the new economy.

In 2000, the NASDAQ index hit 5000 points. Who is the most proud? Clinton! Because the whole Wall Street, the whole United States and the whole world know that Clinton is the advocator and advocate of the new economy. Now the nascent is so brilliant that it is hard to think of a word, difficult, two words, difficult, three words, impossible! But someone came out to pour cold water on Clinton. Summers, then the Minister of Finance reminded Clinton, "Mr. President, you must never associate the rise of the index with your economic policy in a big public.

Clinton asked rhetorical questions: why?

Summers said: because

How can it go up?

Clinton didn't listen to advice.

Facts have proved that Summers is right. The NASDAQ bubble burst, and the NASDAQ dropped from 5000 to 1250.

This is a story which illustrates a truth.

The market is the market and the government is the government.

The two must not be mixed up. It is the right way to go their own way. If Clinton first declared, the bull market of the NASDAQ is the bull market of the new economy, representing the direction of the new industry and the future of mankind. Then, when the bubble burst, what should the US government do to save or save it?

Do not save yourself to slap your own face; save, take what to save, taxpayer's money? Why should the government take the money to save the gambling losers? What should we do to win the game? The US market is an international market, there are too many overseas anti American forces, and it is too numerous to be malicious. Is the US government declaring war to the world?

The stock market crash of China's A shares took place only 5 months ago. During the period, the Chinese government saved a lot of money and avoided the systemic financial crisis. It was very difficult for the Chinese government to take the rescue of the financial crisis. Wu Xiaoling's Tsinghua college of Finance in Wudaokou even put forward a report of 18 million words, and put forward 5 major problems, such as leverage, such as public opinion, such as investors, such as short and out of balance, such as new shares. These problems are not new problems. They are more or less existed in the past. This time, the resonance has exerting great destructive power. But obviously, the report did not touch the soul. At the moment, it is urgent to reflect on the fact that the report is not in the right place, so there is no need to be too strict about it. It is obvious that the report did not touch the soul of the financial crisis. This is the reason why the report does not touch the soul. At the moment, the time is not right. Therefore, it is not necessary to make a request for Wu Xiaoling.

What is the market?

What functions does the government undertake?

To manage what is fair, fair and open, is there someone who sells hard and monopoles the market? If the government participates in it and becomes a party to the paction, then the market will not become a market. All parties involved in the paction can take the blame and push all the problems to the government and ask the government to pay the bill.

Where does the government's money come from? The government's money is the tax paid by the taxpayers, and ultimately the wool is on the sheep, but the premise is that there is no justice. The government in the mature market is afraid to take part in it. The rescue market is more cautious, unless the uncontrollable factors threaten social stability, and dare not participate in the manufacture of the bubble, utilitarian use of the market to achieve its purpose. If there are selfish motives and misconception, then there is a deviation in positioning.

There is an old saying in China, "a little bit wrong, a thousand miles".

The mistakes of policy will be amplified by the market people and artificially create the financial crisis. This is the result of human nature, not by the good intentions of management.

How long did the Nasdaq stock market crash last? In terms of index, it lasted for 15 years. Until 2015, the NASDAQ revisited 5000 points, and even avoided the last bull market. In the bull market before the global financial crisis, the NASDAQ reached 2500 points. No one scolded Clinton, George W. Bush or Obama now.

It is obvious to all the leaders of the China Securities Regulatory Commission after Zhou Xiaochuan's presidency to clarify the relationship between market and regulation.

No matter the index has always been the correct information that management has to pmit to the market, there are cattle and bears in the market, the SFC can not endorse it for them, and it can not be defined lightly. We should reform cattle, leveraged cattle and capital cattle. These words are flickered from the broker's mouth, which is believed by the management's mouth, and the market bull becomes a national cow. The disaster is inevitable. This is the pain point that really deserves reflection.

Regrettably, the tone of the slow bull now becomes the mainstream again. The so-called "national cattle" has become the topic of the circle of friends.

The economy is going downhill, but the stock market is going to rise. Even most of them have proposed a protracted war strategically, and they must fight the war of annihilation on tactics. However, we always want to make a quick decision in the stock market every day. There is always a gap between reality and ideal.

Under normal circumstances, the stock market crash generally does not come back in a short time. Of course, this is not the reason why we are blind and optimistic.