• angrymouse@lemmy.world
    link
    fedilink
    English
    arrow-up
    35
    arrow-down
    1
    ·
    1 year ago

    If you remove stock market as a whole, maybe capitalism can work a little in a soc democracy, with stock market is impossible

    • cynar@lemmy.world
      link
      fedilink
      English
      arrow-up
      2
      arrow-down
      3
      ·
      1 year ago

      A stock market can still work. The ultra high speed market we have now is a problem. Ultra fast trading encourages fast, short term thinking.

      A stock market with an update once per day could work better. It would take all the fast impulse trading out of the market, while still allowing price adaptation. When runs and crashes take weeks to play out, it’s a lot easier for cooler heads and logic to prevail. This, in turn would favour the sort of traders favouring long term stable investments.

      • trougnouf@lemmy.world
        link
        fedilink
        English
        arrow-up
        4
        ·
        1 year ago

        The price updates whenever someone buys or sells, so doing that once a day may be a bit difficult to implement. Forbidding day-trading / imposing a minimum holding time on the other hand may be easier.

        • cynar@lemmy.world
          link
          fedilink
          English
          arrow-up
          2
          ·
          1 year ago

          A queue type setup could likely work fine. Buyers and sellers could list their offers/requirements as a range. A round robin double blind auction matches buyers and sellers. The new price is calculated, based on this, and a new queue is opened.

          Forbidding the various high profit rent seeking would be a little like trying to block a sieve. There are so many variants and workarounds, that closing them all would be difficult. It would also be a lot more vulnerable to being watered down, or declawed completely.

          If once per day is too coarse, it could even work at once per hour. The key is it leaves time for people to think rather than reacting from gut instinct and high speed computer programs.

          • trougnouf@lemmy.world
            link
            fedilink
            English
            arrow-up
            1
            ·
            1 year ago

            Sounds nice, but I guess the first step is to take control away from the likes of Citadel / Kenneth Griffin since they take advantage of all that information and they already get to bid against every order placed in real time.

            I think our government should definitely get on that. In the meantime forbidding this kind of play aka taxing the living shit out of day-trading (like the current short-term/long-term gain system but actually painful in the very short term) should be pretty simple to implement.

            • cynar@lemmy.world
              link
              fedilink
              English
              arrow-up
              1
              ·
              1 year ago

              I definitely agree with the need for short term fixes. Unfortunately, I suspect the core issues are inherent to the current system. Then again that applies to a lot of things at that level, and perfect is the greatest enemy of good.