militarize the IRS
Funding the IRS would be a great start
Redditors are right about the unfairness of the market
11–20 of 233 posts
Re: Redditors are right about the unfairness of the market
#12This wouldn’t work, but my hot take is that anyone with potential insider information can only buy/sell index funds.
You do say it wouldn't work, but just to really spell out the obvious ones:
- no more options/shares for employees;
- significant insider buying/holding is generally considered a positive signal, alignment of incentives, etc. would need replacing with a more complicated compensation agreement linking bonuses to average share price over the year or something.
Slightly less obvious one is that you still have inside information on the index fund, not just that your company might itself be a significant constituent, but inside knowledge of the industry, what's happening to a common supplier, etc.
And by 'index fund' you probably actually mean/want 'significantly diverse pool of shares', an index can be small. Nothing (other than it being silly) stops it being just TSLA or whatever either, 'My Favourite 1' can be an index of my 1 favourite shares, and you can create a fund that tracks it. Obviously that's silly and doesn't happen to that extent, but it might if you incentivised it by making 'index fund' the rule.
Re: Redditors are right about the unfairness of the market
#13I understand that people shouldn't benefit from insider information for their personal trading - but there are rules around this.
Blanket banning stock trading has a lot of downsides. Its an important part of everyone's financial wellbeing - esp if you are wealthy or powerful. I left my job in financial industry primarily because of this.
Re: Redditors are right about the unfairness of the market
#14I hate to be a cynic, but the rules have never really applied to the guys at the top of the market. In business school you’re flat out told that “the role of government is to pick the winners”. And the associated cases were generally about compromising regulatory authorities — with the goal of showing why the side with more money almost always wins. Everyone below you on the food chain sees you as a payday and is willing to be complicit for the right price. If (price of regulatory capture) Or as the old saying goes, steal a million dollars and you go to jail, steal a billion dollars and they name a business school after you.
Re: Redditors are right about the unfairness of the market
#15Money printing and the Cantillion effects associated with it have created asymmetric playing fields which are fundamentally unfair. The injustice of modern markets can be explained with an analogy: Imagine that you don't have much money and you open a coffee shop; assume that it's your only stream of income... Now imagine that a few years later, a multi-millionaire opens up a coffee shop right next to yours as a pass…
This is what happened with real estate in the west. It is for example, not worth owning property in some major cities as a retiree vs selling it for a fortune and moving to somewhere warmer in many major western cities.
Hence we see the explosion of corp/concentrated ownership of real estate and exploding rents (just up to the level you can afford to live with the rest of your income but not much else). Money printing means it’s a great time as a millionaire to buy lots of property, and as an average person to sell whatever excess non-residential property you have for huge amounts. Hence cities slowly become unaffordable/within the very limits of affordability for most citizens.
Re: Redditors are right about the unfairness of the market
#16Money printing and the Cantillion effects associated with it have created asymmetric playing fields which are fundamentally unfair. The injustice of modern markets can be explained with an analogy: Imagine that you don't have much money and you open a coffee shop; assume that it's your only stream of income... Now imagine that a few years later, a multi-millionaire opens up a coffee shop right next to yours as a pass…
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Re: Redditors are right about the unfairness of the market
#17This wouldn’t work, but my hot take is that anyone with potential insider information can only buy/sell index funds.
You do say it wouldn't work, but just to really spell out the obvious ones: - no more options/shares for employees; - significant insider buying/holding is generally considered a positive signal, alignment of incentives, etc. would need replacing with a more complicated compensation agreement linking bonuses to average share price over the year or something. Slightly less obvious one is that you still have inside inf…
at least consider a ban on stock buybacks like was the case until that regulation was rolled back in the 80s.
Re: Redditors are right about the unfairness of the market
#18Money printing and the Cantillion effects associated with it have created asymmetric playing fields which are fundamentally unfair. The injustice of modern markets can be explained with an analogy: Imagine that you don't have much money and you open a coffee shop; assume that it's your only stream of income... Now imagine that a few years later, a multi-millionaire opens up a coffee shop right next to yours as a pass…
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Re: Redditors are right about the unfairness of the market
#19Redditors: complain about alleged market manipulation by "hedgies". Coordinate between one another on subreddits like /r/WallStreetBets, /r/SuperStonk, and /r/GME. Encouraging thousands of others to "buy and hodl" a particular stock sounds like a coordinated scheme to me. In a democracy that values free speech and the liberty of association, combined with the Internet, it was inevitable, but then the bar for what cou…
A redditor publicly posting "Buy and Hodl" isn't unfair in anyway. Everyone in the world can read that comment at exactly the same time and act based upon it.
Piling into high gamma strikes at the same time to force a dealer squeeze is a bit more than expressing a view that an asset is undervalued.
I'm not defending either side here, but Reddit has picked a fight that is absolutely tantamount to market manipulation.
Re: Redditors are right about the unfairness of the market
#20I understand that people shouldn't benefit from insider information for their personal trading - but there are rules around this. Blanket banning stock trading has a lot of downsides. Its an important part of everyone's financial wellbeing - esp if you are wealthy or powerful. I left my job in financial industry primarily because of this.
> - but there are rules around this
Quis custodiet ipsos custodes?
From the article, judges aren't even properly recusing themselves.