Compared with western markets, the Chinese stock market has its own characteristics, including the following: (i) being dominated by individual investors, (ii) being highly volatile, (iii) nontradability of more than two-thirds of the shares, (iv) short sale constraints, (v) response to exogenous information such as government policies, a firm's accounting information, and stock exchange announcements, (vi) stronger imprints of herding, (vii) overspeculation
, (viii) overvaluation of markets, (ix) widely taken short-term positions, (x) insider trading, and (xi) a distempered regulation system [33, 36].
Meanwhile, economies collapsing from overspeculation
, millions of refugees fleeing war in Syria and a threat of another world war beggar disbelief in how much worse things could be.
The sometimes-heard charge of "overspeculation
" is incorrectly framed: The issue is not one of amount but, rather, whether it is done well or poorly.
A decade of harsh and controversial post-war federal "Reconstruction" policies birthed financial overspeculation
in the railroad industry, carpetbaggers, scalawags, robber barons, the Black Friday Stock Market Crash, the most corrupt presidential administration in U.S.
In the U.S., the effect is felt through the rising cost of gas, but in developing nations, a higher price on wholesale rice or wheat means people go hungry--and this is when overspeculation
becomes a human rights issue.
Even a marginal increase in the cost of trading could dampen markets' volatility, discourage overspeculation
and shift capital into investments in real businesses that create real jobs on Main Street.
It would not, in my opinion, be overspeculation
to read this curious comment as a reference to the weakness of the crown of Aragon in relation to that of Castile, as well as to the unpopularity that plagued Ferdinand in the last years of his reign.
In 1857, 1873, and 1893, overspeculation
that began in one city (for example, New York in 1857 and Vienna in 1873) triggered financial panics that swept through Europe, Africa, Asia and the Americas.(35) Capitalists began to find themselves situated within economic forces too numerous, too mobile, and active across too great a distance to predict or control.
Due to several associated problems (overspeculation
, heavy losses for some companies and government bureaus, misuse of government funds), the government closed down T-bond futures trades in May 1995.(6)
The actual causes lay deeper: overspeculation
in land and securities, issuance of too much paper money, and increasing inflation.
His story, and story it is, emphasizes the troubles of the Weimar government, which had stimulated consumption at the expense of investment and fostered an air of overspeculation
. The crash itself was inevitable and made worse by recurring international crises and bank failures.
As a result of "overspeculation
" in the mid-1870s and the severe reaction that followed the 1876 boom, various constraints were introduced in the ensuing years--principally more cautious advances from credit institutions and a more widespread adoption of building regulations.