Comments on: Fool’s Gold: Gillian Tett lectures on shadowy world of derivatives http://www.creditwritedowns.com/2009/05/fool%e2%80%99s-gold-gillian-tett-lectures-on-shadowy-world-of-derivatives.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Martyn Strong http://www.creditwritedowns.com/2009/05/fool%e2%80%99s-gold-gillian-tett-lectures-on-shadowy-world-of-derivatives.html#comment-56410 Martyn Strong Thu, 14 May 2009 17:52:00 +0000 http://www.creditwritedowns.com/?p=8377#comment-56410 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. 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.

]]> By: Peter Timmer http://www.creditwritedowns.com/2009/05/fool%e2%80%99s-gold-gillian-tett-lectures-on-shadowy-world-of-derivatives.html#comment-56336 Peter Timmer Sun, 03 May 2009 22:39:00 +0000 http://www.creditwritedowns.com/?p=8377#comment-56336 This is just an advert for a book to come out in 'months'! Come on Gillian, give some original thought for our 'click'! This is just an advert for a book to come out in ‘months’! Come on Gillian, give some original thought for our ‘click’!

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