http://www.iconoclast-investor.com/2009/02/11/lower-short-term-capital-gains-tax-to-get-the-economy-back-on-track/ An investment blog that is NOT always part of the herd Mon, 30 Jan 2012 00:47:48 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.iconoclast-investor.com/2009/02/11/lower-short-term-capital-gains-tax-to-get-the-economy-back-on-track/comment-page-1/#comment-12331 Bob Anderson Fri, 03 Jul 2009 21:46:07 +0000 http://www.iconoclast-investor.com/?p=1196#comment-12331 Uh, you've got this completely backwards. Only participation in the primary capital market (i.e. buying originally issued shares) has any effect on capital formation and wealth creation. The secondary market (i.e. buying shares on an exchange) does nothing at all to help the company who's stock you're buying innovate or expand. The secondary market exists to provide liquidity and thereby entice primary investment. Other than that the secondary market is a casino. Lowering short term capital gains rates would serve mostly to encourage speculation, not capital formation. Uh, you’ve got this completely backwards. Only participation in the primary capital market (i.e. buying originally issued shares) has any effect on capital formation and wealth creation. The secondary market (i.e. buying shares on an exchange) does nothing at all to help the company who’s stock you’re buying innovate or expand. The secondary market exists to provide liquidity and thereby entice primary investment. Other than that the secondary market is a casino. Lowering short term capital gains rates would serve mostly to encourage speculation, not capital formation.

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