Day traders harm United States
I know money isn't everything, but here I am watching my retirement savings go up in smoke and down the toilet. I am not the richest man in the country, but I was expecting to see some steady growth to my mutual funds.
Thank God that I still have a job and can pay the mortgage and put food on the table. But I was so looking forward to a secure retirement. Can you sympathize with that?
I am writing to you, not because I think that you are responsible for the real estate and mortgage crisis/fiasco. But I feel that there are some improvements that the United States Government can take to improve my situation.
I blame the lenders for lending to sub-prime high-risk borrowers. So I believe that government should not bail-out these fools. And maybe I am one of the fools, because now my broker is telling me that the mutual funds that I thought were balanced were actually heavy into real estate and financial.
I blame also the stock market day-traders. I see these day-traders as the culprits that cause the markets to swing up and down so wildly. I am a long-term investor. The day-traders are my enemy. The day-traders suck gains out of the market before the long-term guys ever see the profits to their investments. For sure. The day-traders do what is termed "taking profits". If a stock goes up, they sell, and thus cause a drop in the stock price. The long-term guy suffers with this drop. Happens daily, hourly. Day traders harm the market, the economy and the country. I repeat, day traders harm the United States with their greed.
Government can alleviate some of this day-trader churn by imposing a sales tax on these quick stock sales. Put a five percent tax on stock sales. Then, remove this tax over five years, pro rated. Real investors will have no tax, because they buy and hold.
I believe that it is the responsibility for the government to repair the harm done by the stock market day traders.