Monday, May 3, 2010

Robert Reich: The Federal Government Needs to Bailout Education

Robert Reich, former Secretary of Labor, has a 2 minute video urging the federal government to provide interest free loans to states to bailout public education k-university AND he advocates a minute tax on financial transactions to be directed toward public education.

A minute transaction tax would eat into high frequency trading. I've posted previously on high frequency trading. It should be banned and is primarily used to manipulate markets through "price discovery" and through essentially adding a surcharge to all other financial transactions conducted by legitimate investors operating at normal transaction speeds.

Mutual funds and pension funds alike pay more than they should because of high frequency trading.

Reich's proposed tax is often described as a Tobin tax and is very much supported by insiders critical of Wall Street fraud and deceit (e.g., see Max Keiser).

Let us hope Reich's proposals are pursued by policy makers....

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