May 12, 2011
I completely agree with any attempt to limit the abuses rampant in today's market. I've read in the past ideas on a trade tax used to monitor what's being done (naked shorts, etc). A 1/4% tax on trades (long or short, also on derivative components) would generate several trillion dollars yearly (Ralph Nader quote). What I like about this is it would be a minimal expense to those investing for retirement and may be a deterent to the abuses by hedge funds and day traders. They tend to buy a stock 'long' but any hint of bad press they massively short the stock (usually naked).
This type of brokerage fee ( or tax on trades ) would allow for far better tracking and control of the numerous abuses that are routine in today's market.