The Role of Government in Financial Affairs

Jul 24, 2015

China’s recent stock market crash caused the Chinese government to intervene and make every strenuous effort to resolve what’s left of the aftermath.  An article published by The Atlantic(http://www.theatlantic.com/international/archive/2015/07/chinas-nervewracking-stock-market-collapse/397724/) introduces what one may consider to be “the season’s biggest economic crisis.”

The Chinese government interfering with and supporting the China Stock Market is an interesting phenomenon. It appears to be welcomed by the global business community, as the entire global community suffers not from a decrease in stock value, but from the loss of confidence, freeze-up of projects, and decrease in investments and employment. It appears that the government’s role to balance out both the frenzy of greed and the panic of collapse will be an ongoing strategy for the future. This goes against a free-market economy. However, we have seen the damage it causes globally now and is no longer acceptable. Governments will have a big role to play in financial stability in the future. Whether it’s an economic collapse or rapid growth, panics all cause global damage. It seems Governments now have a big role to play in financial stability as a new Mega Trend in the future.


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