When the media focuses on the U.S. presidential election, perhaps the more interesting question is: will Wall Street “lose” in this election? That is, no matter who wins, is Wall Street likely to face potentially fatal constraints?
if this seems far fetched, consider the history of social, political, and financial transitions that have shocked the mainstream of society, such as the environmental control of large tobacco companies and industrial giants.
for decades, tobacco giants have been almost impeccable politically. They make huge donations to political institutions and carry out large-scale lobbying activities to deny the self-evident fact that smoking is harmful to human health.
every attempt to change this political dominance was easily thwarted, but then the tobacco giants suddenly lost their reputation, even though politicians had received millions of dollars in campaign donations from major tobacco companies.
although tobacco companies claim that the health impact of tobacco is only a matter of controversy and / or choice, they have become the focus of attention as a pusher who mercilessly kills millions of Americans.
almost overnight, the political barriers to protect big tobacco companies collapsed, and the lies and political conspiracy that had long been regarded as “normal” were overturned.
on the other hand, until 1970, there was little political resistance to the dumping of industrial waste and air emissions by large industrial companies into American rivers for decades.
since then, the sight of rivers on fire in the United States has changed public opinion, and even Republicans who are friendly to big business support environmental regulations, which have cost big companies tens of billions of dollars in new costs.
back to now, when people pay attention to Wall Street: people in the industry all know that Wall Street is just a machine for people in the industry to harvest leek crazily. This has caused people’s hostile attitude towards Wall Street, technology monopoly giants and billionaires. In particular, when the rest of the United States collapsed, the value of these billionaires soared hundreds of billions of dollars in the stock market rally.
when the political wind direction changes decisively, both parties in the United States will quickly feel the change of the situation. When socio-economic trends change, politicians understand that they face two choices – to get involved or to stick to the past and lose the election.
if cultural trends are bad for Wall Street, every politician will have to join in one way or another, or they will be left behind. As in history, politicians have not hesitated to abandon big tobacco companies and industrial giants.
1. A considerable tax is levied on every transaction, whether it is an exchange transaction or an over-the-counter transaction. The most important thing is whether the trading offer has been implemented. This will kill high-frequency trading (HFT) and other fraudulent trading games.
the transaction tax does not affect individual investors or mutual funds because they trade less frequently. It will only kill the parasitic predators on Wall Street.
2. The ban or even restriction on the company’s share repurchase will stifle the main engine of blind and continuous rise in the stock market: enterprises buy back their own stocks, and push up the stock price in the case of stagnant sales and profits. It is estimated that up to 75% of stock market returns can be traced back to companies borrowing hundreds of billions of dollars to buy back their own shares.
it is worth recalling that stock repurchase itself is an act of manipulating the market and conveying interests, which was illegal in the US stock market for a long time. According to the data, stock repurchase has been strictly prohibited by the United States for most of the past 100 years. In 1933, after the 1929 stock disaster, the U.S. began to prohibit stock repurchase transactions. Until 1982, the U.S. Securities Regulatory Commission amended the rules to open up a legal channel for listed companies to buy back shares.
so two simple rules will end wall street’s most blatant internal fraud. These Provisions may become the mainstream and can be implemented at any time.
when social trends change, politicians have to do something. At present, the growing hatred of Wall Street, technology monopoly giants and internal fraud has not been seen in the mainstream of society, but this does not mean that the trend will not change. At this time, mainstream enterprises are as incompetent as those politicians who enjoy the bribes of billionaires.