Hi buddies,
If euro were to print lots of money and give it to banks. then investors borrow cheap money and come to singapore to buy assets, causing bubbles.
Is there anything the gov can do to protect from this kinda speculative activity?
The ABSD is already one such example.
great investors' minds think alike
oh that's for property right? how bout shares?
(10-02-2012, 10:05 PM)Thriftville Wrote: [ -> ]oh that's for property right? how bout shares?
The goal of every rational democratically elected gov in this world, is to get re-appointed in the next elections. Therefore, their job is never to 'protect the people' from speculative behavior.
For example, implementation of ABSD seems to be 'protecting the people' but the true driving force, is to keep the electorate happy by not allowing runaway prices, and eventually let them get re-elected in the next elections.
So, do u think a speculative rise in the equity market will hinder their chances in the next election?
If there is a speculative rise in equity market, i think our PAPAYA can not do much about it. Throughout history, when there were something like the "TULIP MANIA", the Principals of the world could not do anything about it but just watched and let the "Mania" ran naturally till their lives were spent. So what is PAPAYA going to or can do? Nothing.
Till this day Holland produced the most beautiful tulip though it's origin is from Turkey, as claimed.