Numerous US legislators are proposing a new tax on stock trades to slow down social-media-fueled meteors like GameStop. But such a tax would actually make things worse by prolonging the time it takes for a meteoric price rise to correct itself and reunite with reality.
SAN DIEGO – “God does not play dice with the universe,” Einstein once assured us. True. Instead, a gaggle of geeky gamers with goggles, toggles, and Robinhood-like finance apps are determining our future. Long before GameStop made headlines for its meteoric 1,700% flash and crash, and the US Congress demanded testimony from hedge fund executives (in person and by Zoom), key parts of the economy were already being gamed.
SAN DIEGO – “God does not play dice with the universe,” Einstein once assured us. True. Instead, a gaggle of geeky gamers with goggles, toggles, and Robinhood-like finance apps are determining our future. Long before GameStop made headlines for its meteoric 1,700% flash and crash, and the US Congress demanded testimony from hedge fund executives (in person and by Zoom), key parts of the economy were already being gamed.