The market has been falling for quite a while this year, ending the mad rushes in the earlier bull thrusts.  I have not bought any stocks myself, so if I say anything cheerful at this moment, people would deem me being apathetic and even mean-minded.  Nevertheless, the lastest incidental performance of the stock market did serve as a live example of irrationality of the common people.  China’s present economic development would be another version of irrational affluence, in my opinion, despite the vocal arrogance in the forecast statements made by the officials.  The reasons are mainly two-folded.  One, the market system will not work properly with too much government interference.  The other, most of China’s income still depends on outer demands.  Once the Chinese find their income shrinking, they would start saving more and lower their desire for luxurious products.  I presume there will be the comeback of a deflation before long.  Oh, I am bullshiting…

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