On Monday, 22 September 2008, rumors began to surface in local online chat rooms and on the following morning, mobile phone SMS text messages began to circulate. The content suggested that certain Macau banks were about to go into bankruptcy due to their involvement in the Lehman Brothers and AIG incidents in the U.S. In the afternoon of Tuesday, 23 September 2008, the rumor became so widespread that it appeared on almost all news websites in Macau and people began to panic, especially the senior citizens.
The golden rule of market economy is that the government should do what the market failed to do. Although the whole incident was obviously caused by unproven rumors, and a simple clarification from the authority was enough to restore public confidence in the financial institutions, the Monetary Authority of Macau, or the de facto central bank of Macau, failed to do anything. They even refused to make a press release or issue a public statement after the banks involved in the rumors had requested their assistance. Even worse, depositors and investors called the Monetary Authority of Macau office were not given any assurance or positive remarks about the banks, which had made the local residents even more nervous about the safety of their lifetime savings.
In my opinion, Monetary Authority of Macau had failed miserably to uphold market confidence during time of turbulence. When they finally came out with a press release titled Macau Banking System Remains Stable, the run on the banks was so severe on Wednesday 24 September 2008 that it already caused huge damages to the stability of the financial market in Macau.
The Monetary Authority of Macau had definitely committed the deadly sin of inaction. Morpheus in Matrix Revolutions once said, "There is difference between knowing the path and walking the path." The law clearly stipulated that the Monetary Authority of Macau was obligated to take necessary means to stabilize the banking system in Macau, but they had clearly committed the unpardonable sin of inaction. My sympathy to those who stood in tropical storm for 8 hours just to get their a few hundred dollars back. This could be prevented by a simple and timely action from the Monetary Authority of Macau. But it didn't.
Posts
4 comments:
Hiya!
This is quite interesting. The story's not much different here in the U.S. where people urged the government to step in and bail out cash-starved financial giants just so to hold up the economy. Otherwise, it's gonna be a bear grip foreshadowing the future, where umemployment and inflation would put us all into a recession/depression. Sounds very serious. People point to the government, it's their responsibility, they righteously say.
Maybe it's true. But the government is no more than people, and if you're talking about those in power, they've become so fat and lazy, they're irresponsible. If pressed, they're just do a quick fix, you know, print more money and circulate into the market. They've been handing out these tax rebates for the American public for some time. Every family received $300-600, but what good did it really good? Nada. Zip. I lost much more than that over the last 6 months for my portfolio. Sigh.
The thing is, knowing that they're irresponsible, and probably have no intention of doing what's right, what makes you think that their action is better than inaction?
Well, I might be a harsh judge here. I shouldn't quantify all gov't agents to be the same. There're always some good and loyal ones out there, anywhere. It's important to have faith.
Let's see how the show goes, my friend.
Ich berate Ihnen, die Webseite anzuschauen, auf der viele Artikel in dieser Frage gibt. viagra generika viagra generika online kaufen [url=http//t7-isis.org]viagra generika schweiz[/url]
書いてください。 [url=http://japanese-garden.org]バイアグラ 服用[/url] バイアグラ 服用
su idea es brillante [url=http://csalamanca.com/tag/sin-receta/ ]viagra online contrareembolso [/url] No tomes a pechos! la viagra es mala
Post a Comment