Reply to: Porsche crashes into controversy in the ultimate 'short squeeze'

[sasguru]

.. if a robber is using a gun to mug you then it's only fair to use your own gun and defend yourself. If the robber gets shot in the process then he should not have been trying it.

This simple, homespun wisdom sounds remarkably like the thoughts of Pol Pot:

"The sick are as sly as rabbits, and can swallow a whole pot of rice."

"If you do not complete your task during the day, you will complete it by night."

"Work is a fight: you blaze like fire and reduce tree stumps to ashes."

[AtW]

So what do you think of the fact that Porsche made most of its profits from market speculation and has been described as a "hedge fund with a car showroom"?

They were defending their long term investment - if a robber is using a gun to mug you then it's only fair to use your own gun and defend yourself. If the robber gets shot in the process then he should not have been trying it.

[sasguru]

This is acceptable too so long as it is self funded or funded without taxpayers unless it is sufficiently proven that such development can be in public interest.

Either way such activity is what I call "self-contained", if it fails it does not affect others, unlike when hedge funds raping companies like VW at will - this negatively affects a lot of people for no good reason at all. Now if Hedge Funds invested long term into alternative fuels and their companies came up with new engines that totally kill VW, then it's fair play - but they don't do anything like it, in fact hedge funds don't invest anything - they just engage in rampart market manipulation.

So what do you think of the fact that Porsche made most of its profits from market speculation and has been described as a "hedge fund with a car showroom"?

[AtW]

Or spend years writing buggy software that no one wants or needs?

This is acceptable too so long as it is self funded or funded without taxpayers unless it is sufficiently proven that such development can be in public interest.

Either way such activity is what I call "self-contained", if it fails it does not affect others, unlike when hedge funds raping companies like VW at will - this negatively affects a lot of people for no good reason at all. Now if Hedge Funds invested long term into alternative fuels and their companies came up with new engines that totally kill VW, then it's fair play - but they don't do anything like it, in fact hedge funds don't invest anything - they just engage in rampart market manipulation.

[sasguru]

Yes, it will reduce speculative supply and demand and maybe speculators would apply their brains to do something useful for humanity, find cure for cancer maybe?

Or spend years writing buggy software that no one wants or needs?

[AtW]

So your proposal is to dry up both supply of and demand for shares at the same time? Genius...

Yes, it will reduce speculative supply and demand and maybe speculators would apply their brains to do something useful for humanity, find cure for cancer maybe?

[DiscoStu]

When you buy/sell in 15 minutes to make profits that's not investment. I want to encourage long term share holding - low taxes on profits achieved from this will help encourage people hold on to their shares and also take long term view for boards of directors.

Anyone who isn't prepared to hold shares for 1-3 years should not be buying them.

So your proposal is to dry up both supply of and demand for shares at the same time? Genius...

[sasguru]

I want to encourage long term share holding .

Ah I see you've convinced yourself of your omnipotent status. A recognised landmark on the long road to complete nutterdom.

[AtW]

You're proposing a 99% CGT, profits will be virtually non-existent on short-term trades and nobody will invest

When you buy/sell in 15 minutes to make profits that's not investment. I want to encourage long term share holding - low taxes on profits achieved from this will help encourage people hold on to their shares and also take long term view for boards of directors.

Anyone who isn't prepared to hold shares for 1-3 years should not be buying them.

[sasguru]

Can I suggest you start with a nice simple GCSE?

He did get the equivalent of a CSE at the Novgordkirskorod Special Needs Technological Institute.

[DiscoStu]

There won't be penalty, just don't expect your profits to be that high. The tax should be higher for short periods - say share ownership over few days is speculation, CGT on it should be at max level, perhaps 90% or more.

Also any leveraging should be outlawed - you either have the money to buy shares or you don't, no loans if any kind - it should not be possible to sell "borrowed" shares.

You're proposing a 99% CGT, profits will be virtually non-existent on short-term trades and nobody will invest because of the tulip returns they'll get, which brings us back to a frozen market. Time to go back to Economics school. Can I suggest you start with a nice simple GCSE?

[sasguru]

What about intra-day trading or in my case less that 15 mins?

People like you are class traitors and would be tortured in the Lubyanka followed by a long sentence in a gulag in Siberia.

atW.

[HairyArsedBloke]

There won't be penalty, just don't expect your profits to be that high. The tax should be higher for short periods - say share ownership over few days is speculation, CGT on it should be at max level, perhaps 90% or more.

Also any leveraging should be outlawed - you either have the money to buy shares or you don't, no loans if any kind - it should not be possible to sell "borrowed" shares.

What about intra-day trading or in my case less that 15 mins?

[AtW]

What on earth makes you think anyone would take a position that they can't exit out of for 2 years without a huge penalty?

There won't be penalty, just don't expect your profits to be that high. The tax should be higher for short periods - say share ownership over few days is speculation, CGT on it should be at max level, perhaps 90% or more.

Also any leveraging should be outlawed - you either have the money to buy shares or you don't, no loans if any kind - it should not be possible to sell "borrowed" shares.

[DiscoStu]

I don't think high CGT for short term profits will paralise market.

CGT should be highest for short term gains to encourage long term investment - perhaps CGT should be zero after 2-3 years of share holding, so I do advocate low or zero taxes for long term investors and high taxes for speculators.

You just don't get it do you....

What on earth makes you think anyone would take a position that they can't exit out of for 2 years without a huge penalty? You're brilliant idea would effectively kill investment in shares dead.