posted on Jun, 23 2009 @ 11:17 AM
The best thing we could do is to define our terms properly:
Investors are people who actually allow money to stay in one spot long enough for the money to perform work, i.e., produce a tangible product.
This takes time. So only people who leave money in place for at least, at least six months, preferably a year should be classed as
Day traders and program traders (this includes you, Greenbicman, as well as most of what Goldman-Sachs does) are most defintely not investors. They
are gamblers. Nothing wrong with that. It takes skill to gamble well. But it ain't investing.
The wrong part comes from the way gambling profits are taxed: if I walk into a casino and ply my skills at the blackjack or poker tables and walk away
up $15,000 in a day, it will be taxed as pure income. If I do the same thing in Wall Street's casino, that $15,000 is taxed at much kinder rates, if
So if the two cases were treated equally and the behavior acknowledged for what it is, I'd have no problem with it. Unfortantely, they aren't. If
you gamble every day on Wall Street, you're an investor; if you gamble everyday in the casino, you are a gambling addict with a problem, even if you
win. Card gambling = bad, stock gambling = good....makes no sense, and is a lie.
To sum up, go ahead and let them gamble on Wall Street if you must, but don't call it investing, and tax it the same as other gambling profits.
[edit on 23-6-2009 by apacheman]