Originally Posted by AR
My first crack at a solution--and it's an easy one conceptually, but very difficult to pull off: institute serious campaign finance reform so that we stop selling public policy to the highest bidder. Eliminate super-pacs, and clamp down seriously on campaign spending overall. Constitutional amendment if necessary.
My second crack at a solution--(which my financial advisor mentioned to me yesterday more or less as a joke, but it's interesting): for several years anyway, do all Congressional voting by secret ballot. This would help free up Congress to actually act on behalf of the country instead of playing to their donors and their extremist bases. It's counterintuitive, because we all believe, at least conceptually, in "sunshine," but these are strange times. I'm not sure that I could swallow this at the end of the day--and it would not lack for unintended consequences, but it's really intriguing.
But if we put both of those things together, we might be on to something.
Additional suggestions off the top of my head...
Make it a felony to accept appointment or employment with a registered financial institution for a member of the SEC's investigation arm or administration for a period of 4 years after one's termination of employment with the SEC.
Eliminate both the Market Maker and Option's Market Maker and instead implement a computerized system that efficiently mates a buyer with a seller on all exchanges.
Eliminate "locate" and substitute "borrow" from Reg SHO when shorting any security. Enforce the Securities and Exchange Act of 1934 for all traders. Enforce the laws regarding illegal naked short selling.
Hold any "pool" of money to the transparency standards of investment firms.
Make the fine for illegal trading three times that of the markets harm. Claw back from investors who have profited from these hedgefunds who close their doors as an endgame to their illegal trading.