August 6, 2012 · 0 Comments
From: Eugene Schulman
New York Times
Regarding “Flood of errant trades casts doubt on markets” (Business, Aug. 3): Now we have another sure sign that the stock market is a rigged game. It always has been, but with the rise of automated trading the game has been taken out of human consciousness. There is no longer even room for Adam Smith’s “invisible hand” to participate.
It is long past time to ban computerized trading entirely, along with naked short selling, and begin taxing trades. That is the only way for the markets to return to their original purpose of providing a means for investors to participate in, and assist, business development. The same should apply to the commodity trading markets, which would help prevent speculators from cornering markets in foodstuffs and other commodities, thereby helping to stabilize prices worldwide.
Eugene Schulman, Geneva