Ratigan's Four Simple Yet Brilliant Proposals On How To Fix The System

Tyler Durden's picture

This must have been one of those "so simple it would never occur to any politician" epiphanies. Four great points by Dylan Ratigan that should immediately be taken up by pro-reform politicians. If Barney Frank deems these are unenforceable or not worthy of his attention, replace Barney Frank immediately.

Dylan's four (shockingly logical) proposals on how to fix the broken financial system:

  • Inject transparency, primarily to bring almost $500 trillion in swaps to the forefront.
  • Capital to back Wall Street's gambling. It is a guarantee that very few firms will have Goldman's trading pattern each and every quarter.
  • Enact a tax-code to discourage short-term profits. "Fortunes should not be made in minutes but over years through the creation of value to society."
  • Break up the Too Big To Fail banking institutions. Start with Goldman Sachs. Right Now. Christine Varney, we are still looking at you.

Full must watch clip:

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Ben_the_Bald's picture

Enact a tax-code to discourage short-term profits. "Fortunes should not be made in minutes but over years through the creation of value to society."


Daytraders are not going to like that.

E pluribus unum's picture

I'm sure GS will be in favor of it too.

jdun's picture

I'm against anything that deals in more taxes. Taxes are one of the main things that is killing America.

chumbawamba's picture

That and politicians.  And stupid people, but I repeat myself (at least in the main).

I am Chumbawamba.

You Cant Handle the Truth's picture

Taxes are killing America?  You do realize that America has done fantastic during times of much higher taxation, don't you?  

Ignorance of history is killing America, and your comment is fine evidence of that.

Anonymous's picture

Better for whom? You mean like during the Carter Admin? and leading into the recession of 1920? Real winners there. Rates of 70% and <90% respectively.

I suppose you believe FDR saved us too?

TumblingDice's picture

I dont know how many times this has been said, but it is worth repeating:

Federal Reserve Act: 1913

Federal Income Tax: 1913

This was not an accident. Taxes are not even the main source of revenue for the government, going into debt is the main source. Taxes are a form of control. Too many little rascals in the street? tax baby cradles, diapers and baby powder. Too many people smoking for your liking? Tax cigarettes. Too many people drinking? Tax Alcohol. Not enough people using corn (for the corn lobby's liking)? Place a quota on sugar.

Taxes are a measure to make people do what you want. It is simply a form of leverage for the government that it should not have. They also create excess burden and that drags on the economy.


Taxes are inefficient and stupid. But I would not even mind regular taxes, as long as we did not have the hidden tax of inflation, the most regressive tax of all. If inflation is not around, the need for taxes would be smaller since debt service payments would be smaller, and government spending would not have to necessarily be wasteful in order to create a glut in the market so that new money has to be created to cover the new debt, instead of the old money disappearing into treasuries.

So I would have to disagree with Dylan's point about taxes (not a frequent act). If we just remove the hidden tax of having the Fed (and hence inflation/printing) exist, we wouldn't even need his proposed tax to counter balance the negative consequences of that tax.

Anonymous's picture

Yeah, Increase the taxes on s/t profits and the unintended consequence will be even more riskier s/t speculation and more out of wack markets.

blindfaith's picture

No, actually taxes aren't killing America..it is the people who dodge taxes that are.  Wouldn't be nice if all of us could claim our "salaries" as long term capital gains, or write off every cent "earned" as a "business expense". Get rid of income taxes and replace it with a NO exemption national sales tax is the answer.  And include a penny tax on every stock trade, and the national debt will  be gone by next week.

Anonymous's picture

Yup, I don't like point 3 either and do not agree with any law or regulation that nudges people to do long term investing...Make profit where u can, time has nothing to do with that. Even algos are fine, just the unfair data feed is the problem.

Point #1 of bringing the transparency will take care of short-long term profits debate....no encouragement/discouragement is needed by anyone. JUST ENFORCE THE BASIC COMMONSENSE LAWS AND LET PEOPLE BE FREE.

I am a Man I am Forty's picture

Increasing taxes for short term investment is ridiculous.  Just another way to force you to stay in the market.  Terrible idea.  Because I can make money in a shorter period tax me more??  Nonsense.  

Daedal's picture


HFT/GS Manipulation aside, traders encourage price discovery and provide for liquid markets. Duration is not the issue here. Ratigan is correct about value creation for business, but this problem is spawned from government interference in capital markets, not me selling MSFT to Mr. Durden after buying it yesterday.

Since we're on the subject, you shouldn't be punished for holding any asset for x amount of time vs y amount of time -- the whole capital gains tax structure is absurd. In effect, people get punished for putting their own capital at risk if that risk pays off.  Though, the government will punish you anyways for holding on to your money via inflation. Either way .Gov confiscates our assets.

Missing_Link's picture

I generally agree.  The only question is the time frame.

Just tax any profits made in under an hour.  Normal day traders don't make their profits on that kind of a time frame anyway.  It will, however, put the brakes on HFT.

Rainman's picture

But...but....Dylan doesn't seem to understand that TBTF was endorsed by the very government he's asking to unwind it. Think of the millions in campaign contributions going up in smoke if the Beltway critters reinstated Glass-Steagall.

ghostfaceinvestah's picture

4 things that will never happen under our political system.

MinnesotaNice's picture

... until they Goldman sucks every last red cent out of the American public... pretty soon Bernanke won't be able to print enough money to keep up with what Goldman sucks out every day.

Miles Kendig's picture

I think that is the situation we find ourselves in presently MnNice.

Sancho Ponzi's picture

Pelosi (jointly) owns hundreds of millions of dollars worth of CRE, and Tim, Barney and Ben will use their 'You can't handle the truth' argument against transparency ad infinitum. The facts will never be divulged because they can't let them be divulged, and those in power will continue to do anything necessary to kill the dollar. The resulting lives ruined, businesses crushed, and people left homeless and unemployed are merely collateral damage. Please understand they careth not.

snorkeler's picture

Then Nancy, Tim, Barney & Ben need to be replaced due to a massive conflict of interest.

Oh right, that aint gonna happen.  What then????????

faustian bargain's picture

I can't see that these 'changes' address any fundamental sources of the problem. He might call them 'Real' but I call them 'Superficial'.

hank_rearden's picture

breaking up the banks will fix the symptom, not the problem, they'll all end up creeping back together again.

also, everyone and their brother agrees we need more transparency...it's the how that's the problem.

chumbawamba's picture

Transparency is clarified at the end of a rifle barrel.  Give everyone a gun and make competence of their use mandatory for all citizens, and that will clear up a lot of problems.

I am Chumbawamba.

Anonymous's picture

Homegrown bacteriophage that have a curious transduction profile are better than a fully silenced 45.

blindfaith's picture

WOW...you guys have just solved what Planned Parenthood was trying to do all alone.  If Planned Parenthood had been an extension of the NRA or GOP, we would not be having a resources problem.

tradertim's picture

how can BSnbc allow someone like dylan ratigan to tell it like it is? we peons don't want the truth cuz 'WE CANT HANDLE THE TRUTH'.

fire dylan immediately and replace him with dennis 'beaker' kneale and steve LIESman.

aswipe's picture

I represent that remark.

richardprice9's picture

Until every current and former GS employee is jailed, our country and it's financial system is doomed.

chumbawamba's picture

#5: Re-establish a Constitutional metallic monetary system.

I am Chumbawamba.

Anonymous's picture

Who was William Jennings Bryan?

The problem is inflation, not Fiat. Fiat is just another mechanism to inflate currency, but blending other currencies and precious metals to the monetary standard has been suggested and successful in the past. So you go to a gold standard! It can quickly become a gold and silver standard. Or a gold, silver, and copper standard. Fiat is a reflection of the fact that CB's can and will devaluate their currencies whenever they please. Why pretend for your comfort that a modifiable standard will protect your wealth?

Politicians service debtors, and have since time immemorial. The difference in this particular financial apocalypse is that the wealthy hedged with massive amounts of derivatives. There is nowhere to hide, nothing to redistribute this time around.

Miles Kendig's picture

Personally Chumb I prefer the concept behind Colonial Scrip.

hank_rearden's picture

who allowed dylan ratigan and brilliant to be that close together?

Jay's picture

Dylan isn't getting to the heart of the problem with his proposed solutions. The heart of the problem is dishonest money and a dishonest money system via the Federal Reserve.

Anonymous's picture

The problem is not GS....

Who would care if everyone is doing well ?

The problem is due to excessive govt. spending and the wrong tax structure....

If a 10% State Consumption tax....and a 5% Fed Consumption
tax....were the only taxes allowed....then what would immediately happen in the US ?

There would be more entrepreneurial businesses formed such that there wouild be labor shortages....

And one more big big add on....

A fully electronic direct access stock exchange whereby there are no taxes of anykind....and is completely de-fragmented....

There would be no account minimums or maximums.....but there would be a size limitation....

There would be no uptick rule in that supply would be the amount outstanding electronically tagged....

Also the cost of transfer should not be more than 20 cents per 100 units ....and margin would be 4:1 both intraday and overnight......

These two items alone would cause labor shortsages in the US....

A de-fragmented fully electronic exchange is easy to electronically regulate....no dark pools....all price discovery occurs only on the exchange....

Mandates would be granted to the states not the Fed on tax expenditures which would all but eliminate the lobbyists....

Anonymous's picture

Empty rhetoric from a jew toob talking head.

Jeff Lebowski's picture

Credit where credit is due.  Kudos to Dylan Ratigan.

Doing the right thing and doing the easy thing are very rarely the same path.

Anonymous's picture

On one hand I like his ideas, on the other I want to keep my livelihood by trading the ES- Mini, sounds like his proposals would eradicate this on some level.

Anonymous's picture

Just what society needs... a tax on trades that do not last as long as the Dillon or some other deems long enough to be virtuous. Excuse me while I vomit.

Hephasteus's picture

It's all in the roots of the trees. Anything that doesn't support you and asks you to support it is not worth your time or effort. The banks are not supporting america, wall street is not giving them the gains they need to cover the losses they get to retire and they threaten to crash the entire system if they don't get the support they need to be self destructive and socially destructive.

buzzsaw99's picture

F$ck the system, let it fail.

chumbawamba's picture


I am Chumbawamba.

economessed's picture

Thirded.  <TRIFECTA!>

And daytraders -- just what value are you adding?  I have no problem with your choice of livelihood, but face it:  you're like realtors -- you accumulate money by extracting it from the system, rather than producing something of value.

If we lost 20% of our farmers, everyone would suffer.  If we lost 30% of the daytraders, how would we be any worse off?

Hypocrite alert:  I spent 10 years writing bond trading algo's.  Flame on.

Anonymous's picture

disagree with number 3 because it is patently retarded and panders to fucktards.....the time it takes to make a profit is irrelevant...who the fuck is anyone to determine if a new york minute or 34 years is too quick? what if it's a day over?? fuck you....

i would advocate raising taxes on rentier activities....this would rebalance the strong bias for production destroying activities toward productive economic activity and reduce the power of the fire economy.....

strongly agree with #5 hard money proposal...

Hephasteus's picture

Ya there's super people who can do things much quicker than normal people. I heard Bill Gates can lift a tree off a child in a disaster area just by rebooting it. And oprah can cook enough food for 10 million starving babies in 38.9 seconds. These people are doing it all by themselves they got no spotters. I mean when you make 35 million dollars in a minute you could easily produce those relevant things in the real world. It's not like you are going to spend the money slobbering over 2 mllion dollar super cars because you care about the people you interact with.

But you see you would have to face that fact that your the fucktard trying to create the fucktard reality. Which is fine. But you are going to need alot of fucktard assistance to make that fucktard instant money mean a fucktard thing. So go fucktard yourself till you can figure out how to do it all by yourself like our fine bill gates and oprah can.

agrotera's picture

ROFL Hephasteus !

and now, for something completely different:



Anonymous's picture

"Fortunes should not be made in minutes but over years through the creation of value to society." In this scenario, I would love to hear the ideas from Congress about what creates value to society. Under this proposal, I declare that MSM anchors who simply talk add zero value to society and therefore their short term discussions of anything should be taxed accordingly.

geopol's picture

No flaws in that comment...

Anonymous's picture

Welcome back from the dark side, Dylan shows that you can escape from CNBCland, but is it at counterculture rues. At least he speaks the truth. - zeek