Site Meter

Wednesday, January 23, 2008

Oh My God

The South Korean state is intervening in the stock market to stabilize prices

In South Korea, Vice Finance Minister Kim Seok Dong said the government would ask the national pension fund and other government-run funds to purchase stocks. The Kospi edged up 1.2 percent on the news


When DeLong et al suggesting this at the AFA meetings in 1989 a discussant clearly thought we were crazy.

Upon further reflectino he had a point. Tehre will never ever be a time to keep prices down, so the plan is to put all South Korean eggs ni one basket.

I am of the view that national pension funds should hold stock.

Just freaks me out when heterodox ideas actually appear somewhere where they might turn out to be catastrophic.

No comments: