Tuesday 18 September 2007

The Invisible Hand of...Adam Smith?


Current mythology holds that share prices rise and fall on the basis of market forces alone. And most people probably assume that Adam Smith is still right, i.e. the stock market is free of government interference.

Such sentiments appear to be hugely mistaken and as the Hong Kong government rhetoric continues to toe the free market line, violating the traditional belief in unfettered markets.


I mean, we were being taught that way in Classical Economics school of thought, didn't we? I must have missed a line, lost track, skipped class, something like that.

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