The National Council of Resistance of Iran (NCRI) and The People’s Mojahedin Organization of Iran (PMOI / MEK Iran) reported that the last week, Tehran Stock Exchange’s (TSE) main index, TEDPIX, plunged by over 36,000 points, and a further 18,000 points the following day.
Collapses of the stock market
Because of the sudden collapse, hundreds of Iranians gathered in front of the SEO building on Tuesday and Wednesday.
Tehran Stock Exchange’s (TSE) main index, TEDPIX, plummeted by more than 36,000 points on Monday, marking the acceleration of a collapse that has followed a bubble growth during the summer.#Iranhttps://t.co/M9DH0uyEdl
— Heshmat Alavi (@HeshmatAlavi) January 20, 2021
The collapse was not unexpected as economists have been warning it would happen for quite some time, but President Rouhani and his government decided instead to focus on compensating for the massive budget deficit.
Last year, economists drew attention to the budget deficit that would result from a massive loss in oil and tax revenues. President Rouhani’s response was to encourage the people to buy stocks so that the government could use the stock exchange market to further plunder from the people.
The mullah regime’s propaganda and the stock market
People fell for the regime’s propaganda and the stock market index increased to 2 million points in July. But experts said that this bubble growth would not last long. And it didn’t.
People sold their property to invest in the stock market and now they have lost everything, while the government has significantly compensated for some of the budget deficit.
Back in March, Rouhani dismissed the concerns raised about the stock exchange bubble growth. It has been reported that approximately 70 trillion rials of shares of social security investment companies (Shasta) were sold to two million people.
The recent collapse of Iran’s stock exchange market shows the regime’s economic mismanagement and institutionalized corruption. https://t.co/b8bHfosdHJ #WeStand4FreeIran @eu_eeas @USAdarFarsi @VOAIran @StateDept @CdnPressNews @ReutersIran
— Iran Democratic Association (IDA) Canada 🇨🇦 (@IDA_Canada) January 25, 2021
Shasta has a number of large primary holdings but it is owned by retired people and people insured by the Social Security Organization. However, the CEOs and board members are appointed by the government (through the Minister of Cooperatives, Labor and Social Affairs).
Despite belonging to the people of Iran who pay premiums, the regime has always taken what it wanted from the organization. Rouhani’s government owes it over 2.5 quadrillion rials.
Corruption and widespread mismanagement.
The stock exchange market collapse is just further evidence of the regime’s inability to manage the economy. It is quite simply the result of decades of institutionalized corruption and widespread mismanagement.
The Iranian regime has no qualms about plundering the people’s money or about using propaganda to get people to part with their hard-earned cash.
What makes the whole situation even more sickening for the people is that the regime spends billions of dollars on terrorist and belligerent activity abroad.
The regime used the most unethical means possible to compensate for its budget deficit – persuading people to part with their assets and resulting in many losing everything they have. The protests last week showed the regime that its mismanagement will not be ignored and the concerns about another major uprising are all the more real.
Protests across Iran
Major protests have broken out across Iran for less and the state-run media outlets are warning that the anger of the people is reaching new peaks.
Last week, the Ebtekar publication said that the people’s “outrage is slowly building up” and that it is impossible to know what would happen “when this hatred explodes”. However, it did say that the only certitude is that it will be a massive blow to the regime.