Capital markets are unstable. In the past there was no way to make them stable. But today we have computer power that can be used to make them stable.
By using the greater computer power of today we can have a much higher turn over of capital in the capital market. This higher turnover will make the market harder to game or control and the market will no longer have the unstable run ups or declines. Who can change or control the market when say 20% of the capital is trading each day?
So now that we have the compute power to provide for all these transactions that will smooth out the market how do we force people to turn over at a rate of 20% a day? Easy, put a cap gains tax of 0% (zero) on all gains of 7 days or less and put a cap gains tax of 90% of all gains of more than 7 days.
The likes of Yahoo, Micosoft and/or Sun Micro Systems will give us the systems that will provide automated software agents to support turning over one's investments every 7 days (based on the specs you give the agent).
A system like this will make the financial markets work as smoothly as the local fruit market.
MartynStrong: Capital markets are unstable. In the past there was no
With all due respect, your idea demonstrates a lack of understanding of how financial markets work. First, we already have tremendous computing power working in the markets today. Devices like derivatives couldn't exist without realtime computing (and look where that has gotten us.) Automated buying and selling algorithms are responsible for dramatic changes in market positions without any discernible explanation. While automation has provided many benefits and led to huge increases in trading volumes over the past two decades, it has not necessarily produced stability.
Finally, eliminating the capital gains tax is basically a government subsidy for those trading stocks. Any holistic view of the market will predict imbalances when subsidies are granted. That may be useful on a short-term basis, but it is hardly responsible as a fundamental principle.
miles120: With all due respect, your idea demonstrates a lack of
Really ? So if an individual wants to play the odds , and watch the graphs , and work their system of Technical Analysis ( gambling ) , then they shouldn't have to pay any capital gains tax ? However , if an individual wants to invest in a stock based on the intrinsic value of the company that it represents , ( based on price to earnings ratio , profitability vs capital invested , and many other factors derived from Benjamin Graham's "Intelligent Investor " and called "Value Investing " ) then they should pay a 90 percent capital gains tax ? Isn't value investing the method that Warren Buffet uses ? You sir are part of the problem . You and the people like you are part and parcel to the economic failure of this country . You are gambling away the future of this country out of greed and self aggrandizement . I personally do not care if you gamble away your personal future , whether it is on Wall Street or in Vegas , but leave the rest of us alone .
drydae: Really ? So if an individual wants to play the
The media owns the..wait, the corporations owns the..wait..VISA..they get a cut from every transaction worldwide including the digitized healthcare system-to-be..no wait, no, that's right. Did I mention that although Christians do a lot of charity work, Mr. Maher tries to dehuminize them at every turn?
hankelvis: The media owns the..wait, the corporations owns the..wait..VISA..they get a
by definition TAX BASES own their govts, be they munipal, state or federal. banks for the last 25 years, despite executives and noteholders best efforts at sheltering, still kicked back plenty into the coffers. the problem with our government is that it has not accepted secular, big-state communitarianism that successful (post)-industrial economies have. i imagine the reason why we remained immature along these philosophical lines, and still cannot accept the worldview--clinging instead to our sad narratives of competition and rugged individualism--is that WWII was never fought on our soil. We sent young men TOWARDS atrocity, but our civilian population has not lived it for 150 years. Americans kept dreaming of vulgar, suburban paradise because they did not have to watch their cities burn, pile bodies on the sidewalk or rebuild their entire society with the memory of where exactly, EVERYMANFORHIMSELF Darwainism gets you. To this extent, the United States never fully experienced the 20th century, and did not take away its most valuable lesson.
Phillup_Textfield: by definition TAX BASES own their govts, be they munipal,
Bill Maher has identified the ridiculousness of the Obama administration, which, to prove its un-liberalness, has bowed and scraped to Wall Street so low that even George W. Bush must be envious. He must be whistling through his teeth, saying "Goh-lee, I never would have gotten away with that!"
CanadianBeef: Bill Maher has identified the ridiculousness of the Obama administration,
The American dream. As long as these systems remain unregulated, any one of us has the chance to climb the capitalist ladder and take billions of unaccounted for funds. That's the dream that keeps these systems alive. And that's why socialism is such an emotionally charged word - it's a dream killer.
Wyss: The American dream. As long as these systems remain unregulated,
That's what I hear from my $40,000 a year Wichita friend. He'll defend wealthy people more than he'll defend people at his level. You stated it perfectly.
mairs: That's what I hear from my $40,000 a year Wichita
this is an interesting fenomenon... why is that I hear over and over "if we don't let our corporate bosses full freedom to screw us more, they'll screw us more
miriada: this is an interesting fenomenon... why is that I hear
Since the banking industry are not the most reasonable risks, i think WE should charge THEM the same reasonable rate they charge US---30%
WHY Obama and Congress won't let the Post Office get into the credit card business and therefore keep the banking industry in check [ http://www.federaltimes.com/index.php?S=4034396 ]...forget the Henny Youngman jokes about the P.O.---THEY could give us reasonable rates [5 to 18%], turn a profit, AND save the working stiffs who use Visa as their HMO from a lifetime of slavery!
EminemsRevenge: Since the banking industry are not the most reasonable risks,
Hank Paulson, not Tim Geitner, gave the banks the money. Besides, the actual definition of socialism is that the community has a divested interest in the organization they work for (Random House). If the government represents us, then should we not show some interest in how the government is investing our money? We should not be so concerned with labels and more concerned with saving our nation.
cinemabon: Hank Paulson, not Tim Geitner, gave the banks the money.
Cinema Bravo- an informed well thought out post - that is factual ! Thanks
Of course Bush's guy Paulson gave the 700 Bil to Wall st bankers - with NO strings attached.
Lets all be vigilant - 2010 then 2012 are election years. Get ready for even More smears -lies- misinformation & insults spread by CHeney- Rove- Newt ( the brains behind Bush last campaign - dirtiest ever ) and Limbaugh - the ' great spreader of hate ' along with Fox's Hannity.
We should all be way past party loyality - just look at what the' loyal GOP voters ' gave us for 20 of the last 28 years - most with a friendly Congress. Policies of deregulation that planted the seeds to this world wide meltdown. . That is a factoid. .
dianhow: Cinema Bravo- an informed well thought out post - that
D-Source: I love our Democracy. I hate Parties. They're stupid and counter productive. What sense does it make for a person to vote all Democrat or all Republican?
Candidates afiliate themselves with a party because it's almost impossible to raise enough money to when, otherwise. No one agrees with every party issue, though. Imagine being able to agree with who we wanted to without having to agree with someone on an issue simply because they're in our party. Most of us are really Independents. Some of us admit it and the rest of us pick the lesser of the two evils and align ourselves with that party.
I propse what will never happen: No more parties. We would all vote for who we liked and they would vote for what they liked. The American People get what they want.
The US. and Japan didn't honor our agreements, now we're mad that Korea isn't cooperating. If we did now, we could open talks, based on honor, respect and trust. But Obama can't honor our agreements now, because The Republicans would lauch an "Obama is weak campaign", resulting in a Lame Duck President. Instead, we are in a posturing war with Korea, which is hard to win. They honored their agreement for years and we did not. Now we want to demand that they do what we say.
Can we lay off the Party Politics and simply do the right thing? This could escalate into a world problem no one needs.
Dale_Davis: D-Source: I love our Democracy. I hate Parties. They're stupid
We are NOT a Socialist society ! that is a GOP talking point- part of the lies and smears and the FEAR MONGERING THEY DO SO WELL. Do you mean medicare / social se curity - things that the GOP fought against.. They only say yes to breaks / perks for the GOP base- and we know who that is . Its not US.
I take it when you' re 65 you will refuse medicare and social security and any exemptions on your taxes- or any other ' perk ' we enjoy in the USA. Every civilized country gives health care to their people- it is considered a ' right ' not a luxury as some in the GOP call it.
20 of the last 28 years - have been under GOP reign / control - many with a GOP congress. Look at what GOP policies of deregulation of banks / Wall st and lack of common sense safe guards ( that we had before Reaga ) brought us- a world wide meltdown.
You'll never hear that fact on FOX or Limbaugh or on Wall st
dianhow: We are NOT a Socialist society ! that is a
By using the greater computer power of today we can have a much higher turn over of capital in the capital market. This higher turnover will make the market harder to game or control and the market will no longer have the unstable run ups or declines. Who can change or control the market when say 20% of the capital is trading each day?
So now that we have the compute power to provide for all these transactions that will smooth out the market how do we force people to turn over at a rate of 20% a day? Easy, put a cap gains tax of 0% (zero) on all gains of 7 days or less and put a cap gains tax of 90% of all gains of more than 7 days.
The likes of Yahoo, Micosoft and/or Sun Micro Systems will give us the systems that will provide automated software agents to support turning over one's investments every 7 days (based on the specs you give the agent).
A system like this will make the financial markets work as smoothly as the local fruit market.
Finally, eliminating the capital gains tax is basically a government subsidy for those trading stocks. Any holistic view of the market will predict imbalances when subsidies are granted. That may be useful on a short-term basis, but it is hardly responsible as a fundamental principle.
Sadly, I think you're right.
http://images.google.com/images?hl=en&q=john%20bolton&um=1&ie=UTF-8&sa=N&tab=wi
WHY Obama and Congress won't let the Post Office get into the credit card business and therefore keep the banking industry in check [ http://www.federaltimes.com/index.php?S=4034396 ]...forget the Henny Youngman jokes about the P.O.---THEY could give us reasonable rates [5 to 18%], turn a profit, AND save the working stiffs who use Visa as their HMO from a lifetime of slavery!
http://english.pravda.ru/opinion/columnists/107459-0/
OTOH, Pravda might know something about Socialism.
Of course Bush's guy Paulson gave the 700 Bil to Wall st bankers - with NO strings attached.
Lets all be vigilant - 2010 then 2012 are election years. Get ready for even More smears -lies- misinformation & insults spread by CHeney- Rove- Newt ( the brains behind Bush last campaign - dirtiest ever ) and Limbaugh - the ' great spreader of hate ' along with Fox's Hannity.
We should all be way past party loyality - just look at what the' loyal GOP voters ' gave us for 20 of the last 28 years - most with a friendly Congress. Policies of deregulation that planted the seeds to this world wide meltdown. . That is a factoid. .
Candidates afiliate themselves with a party because it's almost impossible to raise enough money to when, otherwise. No one agrees with every party issue, though. Imagine being able to agree with who we wanted to without having to agree with someone on an issue simply because they're in our party. Most of us are really Independents. Some of us admit it and the rest of us pick the lesser of the two evils and align ourselves with that party.
I propse what will never happen: No more parties. We would all vote for who we liked and they would vote for what they liked. The American People get what they want.
The US. and Japan didn't honor our agreements, now we're mad that Korea isn't cooperating. If we did now, we could open talks, based on honor, respect and trust. But Obama can't honor our agreements now, because The Republicans would lauch an "Obama is weak campaign", resulting in a Lame Duck President. Instead, we are in a posturing war with Korea, which is hard to win. They honored their agreement for years and we did not. Now we want to demand that they do what we say.
Can we lay off the Party Politics and simply do the right thing? This could escalate into a world problem no one needs.
I take it when you' re 65 you will refuse medicare and social security and any exemptions on your taxes- or any other ' perk ' we enjoy in the USA. Every civilized country gives health care to their people- it is considered a ' right ' not a luxury as some in the GOP call it.
20 of the last 28 years - have been under GOP reign / control - many with a GOP congress. Look at what GOP policies of deregulation of banks / Wall st and lack of common sense safe guards ( that we had before Reaga ) brought us- a world wide meltdown.
You'll never hear that fact on FOX or Limbaugh or on Wall st
It's fundamentally Christian to take care of others, init?