Tuesday, November 11, 2008

THAT'S HOW THE STOCK MARKET WORKS

Both 台股 and the US market indices have dropped deeply and continuously for the past few days, after the brief rebound in October. People use this as evidence that "the economy is bad".

Firstly, the economy is not "good" or "bad". The economy is the economy. Secondly, the stock market reflects only what the people think about the economy. And they get to chose to buy or sell or do other things with their shares themselves. So if somebody lost his or her money on the stock market recently, do not blame the government or the president or capitalism.

That is just how the stock market works.

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