Chapter 23 Chapter Five: How China Rescues the Market (1)

● After the subprime mortgage crisis in the United States.The U.S. government did not push the problem to the market, but asked the market to solve it. ●What are the characteristics of this so-called industrial and commercial chain? ●Why do they violate the principles of marketization to save the market? How should we understand the bailout?first.I want to take this opportunity.Let me talk to you about a new concept of bailing out the market.In the past, when our government talked about bailing out the market.Many experts and scholars in our mainland will say that the government should not interfere with the operation of the market:.Let the market solve all the problems.What is my opinion on this?I said that this kind of concept is an old concept, so now take a look at the practices of the US government.After the substandard goods crisis in the United States, the US government did not push the problem to the market.It is up to the market to resolve it.The U.S. government is in a short period of time.Decisions were made quickly and decisively.What decision?

Immediately rescue the market, and spend a lot of money to save the market.So what is the point of this bailout idea?I would like to take the United States as an example to illustrate.Think about it, if the United States does not save the market.What's the end?That is the collapse of the financial system.And what's next for the collapse of the financial system?The confidence of ordinary Americans has collapsed.What's next in the collapse of confidence?Consumption decreases.The next one, production is affected, and the company goes bankrupt.The next one, unemployment, and the next one, consumption will continue to decrease.thus affecting the real economy.

Did you see that, this is the collapse of a chain.That is to say, a new concept I would like to share with you today to replace the market-oriented view, that is, whether it is the United States or China, we have entered an unprecedented new era of "business chain". What are the characteristics of this so-called industrial and commercial chain?That is, when there is a crisis in a sector, if you do not rescue it, a series of problems will start from the crisis of confidence, which will impact other sectors, resulting in a terrible domino effect, which will cause the entire economy to collapse.This is a new era, don't use marketization to explain our society, that is the past world.Today's society basically has a domino effect of industrial and commercial chains.If there is a problem in a department, can you save it?The result of not saving is that the entire economic system collapses as the dominoes fall.Therefore, the US government's approach is in line with the needs of this chain, although it is a capitalist country, although it understands marketization very well.And I believe that their understanding of marketization should be much higher than our understanding of marketization.Why do they violate the principles of marketization to save the market?It is because they want to cut off the business chain and set up a firewall.Let the financial crisis not affect the confidence of the American people, their consumption, and the real economy. This is to save the market.In fact, the real purpose of the U.S. government's rescue of the market is to cut off the business chain and set up a firewall, otherwise there will be a domino effect.

The purpose of the US government to do this is right.The speed is also very fast, very decisive.In this regard, I give a positive evaluation.In the same way, I brought the same question to China. Today, China is also in the era of industrial and commercial chains. Do you still remember what Premier Wen Jiabao said?Confidence is more important than gold.Please think about it, if the financial sector of the American industrial and commercial chain collapses, the result will be the second domino, and the second domino will be the collapse of the confidence of the American people. I believe this is what Premier Wen Jiabao talked about." Confidence is more important than gold" an important background.