Investing In The Future And Jobs?
“George Washington” at Naked Capitalism has a nice catch: Michael Hudson on the markets
Take any stock in the United States. The average time in which you hold a stock is–it’s gone up from 20 seconds to 22 seconds in the last year. Most trades are computerized. Most trades are short-term. The average foreign currency investment lasts–it’s up now to 30 seconds, up from 28 seconds last month.
The markets aren’t about economics and fundamentals, they’re about game theory. They don’t know anything about the companies behind the stocks, they are only interested with whether it is trending higher or lower. Gamblers spend more time calculating a blackjack hand, than market traders spend on individual transactions.
I would think that a 60% capital gains tax on anything held for less than a day would put an end to this absurdity.
January 3, 2011 11 Comments
