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2010-06-01

The Greek tragedy?

Comments on Andrew Sheng “The Greek tragedy: Global debt crisis and balance sheets”, http://www.eastasiaforum.org/2010/05/31/the-greek-tragedy-global-debt-crisis-and-balance-sheets/

Sheng's following description at the start is interesting and sensational: "If a pack of wolves stalk a herd of buffalo, the herd can guard the weaker buffaloes. But if the wolves stampede the herd, they are able to take down the weakest buffaloes."

He tries to state the negative side of the financial markets, but it may have a side and negative effect on markets in general.

The first question is: what are normal participants and what are market wolves, and who can define and identify them and do something positive about it? That can be very difficult indeed.

It is like nature and food chain. “We, human beings”, need to determine which ones along the chain are good and which ones are bad, of course according to our standard and values. But we, though highly intelligent, can often be wrong in our interventions on nature.

So much digression and let me get back to the topic here. If the market participants do not act or react to news and information and take actions to maximise their interests, what do we expect them to do? Should they reward Greek equally as they do to Germany?

So I seem to have lost in this line of thinking and am disoriented as to what are the norms and principles regarding to market participants.

Let’s also move to a private company. If it is bankrupt, what should or do we “human beings” need to do? To let it fail because it is failed or act as “red cross” to rescue it?

Again, Sheng’s remarks have caused me great uncertainty.

It is complex economics and normality/morality, isn’t it?

Learn, learn and learn, life-long learning work in modern and knowledge society with its changing and uncertain morality.

Are reforms needed?

Have the reforms and changes in China over the past 30 years moving to market economy good or bad according to some morality?

I am wondering and wondering.

The unfortunate Greek tragedy!

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