China has joined the WTO and Greed will come

Hong Kong has suffered two stock-market crashes, first it was in 1973, the most recent one was in 1998.

It all started when foreign fund managers entered the stock market. They bought a lot of shares at low price, then they pushed up the price gradually. People are usually greedy, and very few would listen to LORD's teaching of not after unrighteous gains. When they see the price rise steadily over the years, they cannot resist buying some themselves. When a "stock-market-fancy" has fully developed, i.e. nearly all the population are talking nothing but shares, and has gained momentum, the foreign fund managers sell all their shares, thus reaping tremendous profit. (Note : the fund managers cannot sell their shares unless such a "fancy and momentum" are fully developed, for selling before that will depress price.)

It happened all over the world, in Japan, in Brazil, in the Philippines, in Thailand, in Korea, in Indonesia, in Russia, in Hong Kong, in Argentine, .....

The cause of this is,

  1. Lack of Moral Education

    Ancient China would place moral education topmost. Now, nearly all countries, including China, would not educate its people in Moral. People are never taught Jesus' teachings "worship LORD and not money", and LORD's teachings of not after unrighteous/dishonest gains, "You shall not covet your neighbor's house/wife/servants/ox/ass ... anything that is your neighbour's.".

    People are greedy for quick cash. In Hong Kong, we saw long queues of people buying houses to speculate, buying stamps to speculate, buying stocks to speculate, ....

  2. Money is nothing but IOU ( = I owe you ), a debit or credit entry in the account books of Banks only, not silver, nor gold, nor anything material.

    Bank managers are more than willing to lend, as bigger the lending, bigger the profits . Therefore, higher the property price, the better, as mortgage would be bigger.

    When a country allows foreign banks to do lending in their country, such wild-lending will usually begin.

    In Ancient China, silver was the money. Now, no country would talk about silver as money.

  3. No one has to bear any responsibilities should Limited Companies fail

    Lincoln (USA president in the past) paid all his creditors.

    But no one in a Limited Company, its directors nor shareholders, has to pay the creditors should the company fails. They may become rich when their stock sell in the open market, and when the company fails, they do not have to be responsible to their creditors.

    Recently a super-market-chain failed in Hong Kong, those suppliers who supplied canned food, groceries to the super-market-chain lost millions.

Japan has not yet fully recovered from its bubble-burst in the 80's, and Japanese Government has to borrow heavily from the Industrialists in the form of bonds to salvage many banks. (Note : Japan industrialists are very capable people, their productivity is huge, and their global market share is huge, therefore they have money to lend to their Government. For weaker countries, their only recourse is to ask the IMF for help.)

I am for free-trade. Free-trade has long been the tradition in Hong Kong. Hong Kong taxes no import/export except cars/cigarettes/wine/... those luxurious items.

But after China's entry to WTO, and foreign banks begin to lend in China, and China opens its stock market to outsiders, lot and lot of Chinese will become greedy, will go after unrighteous quick cash, and will eventually lose a lot in the bubble that will be come and will burst.

Wu Siu Yan
14th November, 2001

(P.S. I am for country wide Moral Education undertaken by Government, and I think that could equip the people to handle many treacherous situations in life, and could solve lots and lots of social problems. (Why not follow what our ancestors did ? place moral education the topmost. Why should Chinese follow the Roman type of political system?))


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