November 2, 2007
India and Thailand Governments Learn the Hard Way
The governments of both India and Thailand decided to control "foreign investors" in their domestic stock markets. Each government was worried about excessive speculation in their markets and blamed foreign investors for their troubles; each government threatened their own legislative "tricks." The effect of both effects was the same: Their markets plummeted and they withdrew the controls in a torrent of accusations about incompetence. Goverments have, thoroughout history, believed they have more control over trading markets than they in fact do. One by one governments learn they can destroy their markets very quickly but they cannot "tailor" them to show comfortable, steady growth.
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So this comes after Paulson's auspicious outlook from recent trip to India?
Posted by: Benjamin Troutman | Nov 3, 2007 4:43:37 PM