The Game Stop scandal once and for all exposed just how corrupt the financial system is. The bottom line is that regular folks simply outwitted the Experts and the Experts, rather than take the loss and learn the lesson, called on the power of major corporations and government regulators to squash the regular folks. They do want us to take our savings and dump it in the market, but they don’t want a million of us, each using our $1,000.00, to do what they do all the time – manipulate stock prices for personal benefit.
This was also a rare moment of unity where everyone from Commies to MAGA were united in their outrage. Naturally, most solutions proposed for this are ineffective. I’m still in favor of breaking up all large corporations and confiscating all personal wealth above $5 billion (the proceeds to be distributed by lottery to American citizens in $100,000.00 lots). But even the Commies aren’t in favor of that. So, as we won’t actually solve the problem, a few other proposals.
- You can’t sell stock you don’t own (they really do this).
- The additional capital gains tax on a stock held less than 24 hours is 90%. Less than a week, 50%. Less than a month, 40%. Thirty one days or longer, no additional penalty. The idea here is to get people to be investors, rather than gamblers.
- Corporate boards are responsible, civil and criminal, if financially critical corporate information leaks before public announcement (this to hamper insider trading; don’t go after the guy who acts on a tip – go after the tipster).
- Shares of corporations bidding for government contracts in excess of $10 billion cannot be traded until after the contract is released. Once you start the bid process, no one can buy or sell your stock (this to prevent government people from insider trading).
- No bail out, ever, for any financial corporation. Sink or swim.
- No corporate executive can become a government employee until five years after leaving corporate employment. No government employee can become a corporate executive or board member until ten years after leaving government.
- Corporations with a market cap in excess of $1 billion cannot donate to political parties; pay speaking fees; employ spouses, siblings; children, grandchildren, parents, first cousins or in-laws of government officials
I know we’ve all defended free markets – and, in fact, we still do. But the reality is that we don’t have free markets. We have a quasi-feudal, bastard child of Capitalism and Socialism. The economy isn’t for GDP. It isn’t to get rich. It isn’t to provide a tax base. It is to allow one person, working hard and living frugally, to support a family and leave a legacy for children. Anything that is not geared towards that is bad and must go. Until we wake up to the fact that the system, itself, has to go, we really won’t get anywhere.
