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Thought not. But only one vote counted: Alan Greenspan's.
Gee, I wonder what the next bubble is going to be?
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Bubbles for everyone!
What could go wrong? Again?
Does the latest fix help the bubble problem?
Based on Krugman's chart, would it be fair to call Greenspan "Mr. Bubble"? Not to malign a good bubble bath product...
the only way to prevent bubbles....
...is to create significant disincentives for short-term "arbitrage" (the "fancy" word that financial types use instead of saying "speculation and manipulation")
In early 2004, the average daily volume on the new york stock exchange was around 1.5 billion. By mid 2007, that volume had doubled, and by mid 2008 it had tripled.
The only way to fix the financial system is to actively discourage speculation and manipulation of the market by taxation using a sliding scale based on how long an asset is held. For instance, if an asset is held for less than a week, a sales tax of 10% could be imposed -- if held for between a week and two months 7.5%, if held for between two months and a year, taxed at 5%, if held for between one and two years, 2.5%, and over 2 years no sales tax at all.
In addition, providing higher tax rates for capital gains based on stock prices rather than dividends distributed would also discourage bubbles,
Of course, an entire industry devoted to the short-term manipulation of assets would vanish practically overnight -- but the stock market would begin to perform as it should under a "capitalist market" system...
Well, as Volcker points out...
... we need fewer financial engineers and more electrical engineers, so that's all to the good.
Somewhere in my travels I also read that even a small transactions tax would have paid for the bailout and discouraged speculation as well.
[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.
this is the result of retaining GOP officials
from the previous administration when the new one is Democratic.
Obama's planning on doing the same--and the media will probably tell him to keep Bernanke and/or Paulson in this time of "crisis".
More, Paul and Lambert
Please talk more about these!
Paul: "Of course, an entire industry devoted to the short-term manipulation of assets would vanish practically overnight (if certain taxes are added--see above)— but the stock market would begin to perform as it should under a “capitalist market” system…"
Lambert: "Somewhere in my travels I also read that even a small transactions tax would have paid for the bailout and discouraged speculation as well."
Actually, the only way to prevent bubbles...
...is if you can find a way to remove greed from the human personality.
...for the rest of us