Victor Duggan Economist WHO WAS PAYING attention to GameStop a month ago other than committed gamers and punters on the stock market?
The problem was some punters realised that if the share price went up instead of down, the hedge fund was massively exposed and the ordinary guys could make a killing. In the very short term, it didn’t matter whether GameStop was a good business or not. All that mattered were the mechanics of the market.
Likewise, stocks and shares and even many of the more esoteric derivative products all have a sound original basis. The stock market is an appropriate vehicle to channel excess savings into more or less risky investments. Futures originally allowed farmers to lock in a price for their produce ahead of harvest time, and to plan accordingly, for example.
Perhaps the easiest approach would be simply to ban speculation. But, sometimes the distinction between gambling and investment is in the eye of the beholder. How about a tax that weeds out the speculators but only puts the lightest of burdens on investors? Such a Financial Transactions Tax is not a new idea, but maybe one whose time has come.
You really can write whatever shite you want in the Journal as long as involves unloading on unnamed people in suits who earn more than €50k per annum.
Such a moronic article. Worthless.
It's funny how 'speculation' has only become an issue since the small guy on the street has learned to work the system! We've ignored the billionaires & unsecured bondholders who've been 'professionlly' manipulating the markets for decades! 2008 being a prime example.
This article is a crock of nonsense tbh
Haha. This could have been summed up as “need to stop poor people playing the stock market “. Rubbish
How about we cut the massive ministers wages & expenses & advisors & RTE & over priced construction jobs & pointless council over priced advisory jobs. Highest paid in the whole of Europe
Any word on the hegde funds shorting this stock (apart from what a short is) and what purpose that serves to society? None, would be the answer. Yet, it's tax the investor/speculator who drive the price up!?
Nothing on foreign shares except paying capital gains tax of 33% 😑 Instead of trying to add another tax, why don’t we reward long term investing: the longer you hold your shares, the lower CGT you pay. You incentivise long term investing.
Nice seeing the journal stick up for the cabal