Taoyuan Nights

Today, Taiwan’s main stock market index (TAIEX) dropped almost 6% in a single trading session. Taiwan’s government has recently banned shorting of stock, has dumped public funds into the market in a (futile) attempt to keep the index up, and dropped the interest rate twice in two weeks.

But I guess it wasn’t those ‘evil’ shorters that were causing the problem, was it? Of course… now, without shorters, we have no forced buyers in the market to flatten out the drops and start off recovery rallies.

And as for reintroducing low interest rates… well, what do you think it was that got the world economy into this problem in the first place?

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So… what happens next, now that Taiwan has thrown away all this public money on busted attempts to prop the market up artificially?

“The tumble came despite market speculations that
the Cabinet would inject mass funds into the market.”

There’s a fire? Quick, pour more oil on it! “Jai you!” :-)

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More here at the China Post.