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View Diary: Open thread for night owls: A stock transfer tax makes good sense (178 comments)

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  •  You analogy doesn't hold... (0+ / 0-)

    ...because pollution is a bad thing.

    High frequency trading is not bad. It doesn't hurt. It helps. It makes the market more liquid, so people can get in an out of positions with less fear.

    Remember in 2008 when the credit markets froze?  That market is a ill-liquid one, with high transaction costs.  Why do you want to make the stock market look more like the (obviously broken) credit market? Hasn't there been enough pain?

    It is true that HFT probably increases short-term volatility. But who cares? As long as we resist the urge to bail out any traders, it will be fine.

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