On The Media is produced by:
For financial journalist Michael Lewis the desolation emanating from Wall Street is all too familiar. He’s edited a new book Panic: The Story of Modern Financial Insanity that returns to five of the most recent market meltdowns and analyzes what reporters thought was happening before, during and after each of them. Lewis explains why the past isn't really past.
Cap 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 cap in the cap market. This higher turnover will make the market harder to fix 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 to 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 7 days or more. 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.
Please keep your comments relevant to this entry. Email addresses are never displayed, but they are required to confirm your comments. All comments on On the Media are moderated. On the Media reserves the right to edit any comments posted on this site. Please read the onthemedia.org Comment Guidelines before posting.
Back to Episode
