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> Taxing this decision discourages making it—even if only marginally—and makes capital markets dumber and less efficient. Or it encourages making longer term i
by polygamous_bat 3y ago
> Taxing this decision discourages making it—even if only marginally—and makes capital markets dumber and less efficient.
Or it encourages making longer term investment decisions rather than trading like a jittery cocaine addict (which by no small amount of irony a nonnegligible number of traders are already.)
- twoodfin 3y agoWhat you’re suggesting is that markets are more efficient when they’re less liquid. That’s both intuitively and empirically wrong.
- polygamous_bat 3y agoWhy? We already have regulations such as circuit breakers in our markets because unlike what you are claiming, absolute liquidity is not the god you think it is. There can absolutely be such a thing as over-optimization.
- stouset 3y agoThey are likely suggesting that incremental, hypothetical increases in market efficiency appear to come at increasingly steep costs which primarily borne by the rest of society at large.
- twoodfin 3y agoAnd the evidence for this is … ?
- polygamous_bat 3y agoFront-running is an easy example.
- lotsofpulp 3y agoSo place a limit order.
- polygamous_bat 3y agoDo you also preach everyone to learn self-defense when they propose making mugging illegal? No, in the best world we do both.
- lotsofpulp 3y agoClicking radio button on a website is not at all comparable to learning self defense. Also, front running is already illegal. https://www.investopedia.com/terms/f/frontrunning.asp https://www.investopedia.com/terms/f/frontrunning.asp
- polygamous_bat 3y ago> Clicking radio button on a website is not at all comparable to learning self defense. However, stealing money is still stealing money. > Also, front running is already illegal. Great! Which means there are sometimes legitimate reasons to clamp down on "hyper-efficient" but socially negative actors.
- kasey_junk 3y agoFront running is illegal.
- stouset 3y agoFinance is 12% of the entire US economy.
- BeFlatXIII 3y agoWhat extra liquidity is there for executing trades every microsecond instead of batching them up for thrice a minute trades?