[Vnbiz] Vietnam SEC plans to ask government to pump in money to save the stock market

[Tran Dinh Hoanh]

Dear CACC,

www.VNexpress.com <http://www.vnexpress.com/> today has a new article that
Vietnam's Securities and Exchange Commission (Uy Ban Chung Khoan) is asking
the government to, among other things,  pump more money into the market to
save the stock market.

I am not sure how to pump what money into what and where, but it looks like
this may not be a good idea.  The Vietnam stock market has been running
extremely hot due to many unethical trading practices (inside trading), hot
fad (many people went into stock investment because they thought they
could make money fast), investor had no clue about stock value of a company
and simply bought any stocks from any company (including brand-new companies
with zero track record), abuse of the stock market (i heard oral reports
that some unethical folks would open a series of brandnew companies to sell
stock on the market but didn't care if the companies would do any business
or would survive a month.  They just wanted to sell their stocks, got the
money and kinda disappeared).

For several years, when everyone was so hot on stock, I kept telling people
that the stock market wouldn't last long, the whole thing would collapse
(please check my old messages on this forum), because I knew all the stupid
games people played.  Now, of course the market is collapsing.  Why should
the government want to pump any money into the market, wasting money to save
unethical and dumb conducts.  I recommend that the government does only 2
things: (1)  Tightening its supervision on the market, i.e., enforcing rules
on inside trading, tightening regulations on how a company can sell its
stock to the public--track records and public disclosure of financial
information, vigorously prosecuting frauds and illegal manipulations of the
market, and (2) let the market drops, survives and recuperates by itself.
The market and investors just have to learn how to be smart,m clean and
productive.

Have a great day!

Hoanh

-- 
Tran Dinh Hoanh, Esq., LLB, JD
Washington DC
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