From time-to-time, CCI likes to feature a "guest contributor" and/or offer a general market commentary
I happened to read this posting on Mark Cuban's Blog that struck a chord with me. http://blogmaverick.com/2012/09/21/what-business-is-wall-street-in-3/. Sometimes I agree with Cuban's perspectives, sometimes not. However, one thing I like about his pieces is he usually just does not opine about some issue, but seems to try to offer some actionable, non-political, suggestion to address the issue.
This post talks about how wall street has become less about capital creation/allocation and more about using the system to make short-term profits. That is not an overly unique claim or commentary. I also agree with that sentiment. However, Cuban goes on to offer an approach to addressing the issue aside from the tired, old, outdated, populist, cry for "more regulation". I'd encourage you to read the whole post, but I think the paragraphs below summarize his proposal well. Agree with them or not....but to me at least I'm glad to see someone actually trying to propose a solution to an issue.
PS: Full disclosure: I am not a Mavs fan.....GO BULLS
* * * From BlogMaverick * * *
"My 2 cents is that it is important for this country to push Wall
Street back to the business of creating capital for business. Whether
its through a use of taxes on trades(hit every trade on a stock held
less than 1 hour with a 10c tax and all these problems go away), or
changing the capital gains tax structure so that there is no capital
gains tax on any shares of stock (private or public company) held for 1
year or more, and no tax on dividends paid to shareholders who have held
stock in the company for more than 5 years. However we need
to do it, we need to get the smart money on Wall Street back to thinking
about ways to use their capital to help start and grow companies. That
is what will create jobs. That is where we will find the next big thing
that will accelerate the world economy. It won’t come from traders
trying to hack the financial system for a few pennies per trade.
And solutions won’t come from bureaucrats trying to prevent the traders from hacking the system. The
only certainty when bureaucrats step in is that the law of unintended
consequences will smack us all in the head and the trader/hackers will
find new ways to exploit the system that makes them big money and even
more money for the big institutions that develop products for the other
institutions that are desperate to play the game."