According to the other link that's been posted (article is here: http://www.vox.com/2015/7/7/8910293/china-stock-market-crash), the crash happened as a result of several rounds of increasing restrictions on "trading on margin"; using borrowed money to ride the stock market. Apparently the restrictions were so well-enforced that it actually chopped growth off at the knees, and the market fell into free-fall.
I'm not saying that regulation is bad (it's not), but they clearly went overboard in an attempt to curb their bubble-like growth, and ended up causing the same kind of market contraction they were trying to prevent. Of course, I would assume it's likely that the bust would've been far more dramatic if they had let the bubble find its natural end.
So this happened due too much or too strict regulation, but reading what you said it would end up happening anyway, so what should have been done to avoid it?
it wouldn't work now, real socialism is outdated, even "natural" socialist countries are capitalists as fuck xD
I don't really know that much about politics, i do know about it, specially in my country but the whole political environment at a world level it is too complicated for me.
But how would you purpose a change like that nowadays?
So that's what happens when you let the invisible hand of the free market run amok? If only we had historical precedents to learn from.
Nah, let's just keep doing it and allow our economies to return to destructive boom-and-bust cycles.
According to the other link that's been posted (article is here: http://www.vox.com/2015/7/7/8910293/china-stock-market-crash), the crash happened as a result of several rounds of increasing restrictions on "trading on margin"; using borrowed money to ride the stock market. Apparently the restrictions were so well-enforced that it actually chopped growth off at the knees, and the market fell into free-fall.
I'm not saying that regulation is bad (it's not), but they clearly went overboard in an attempt to curb their bubble-like growth, and ended up causing the same kind of market contraction they were trying to prevent. Of course, I would assume it's likely that the bust would've been far more dramatic if they had let the bubble find its natural end.
So this happened due too much or too strict regulation, but reading what you said it would end up happening anyway, so what should have been done to avoid it?
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