Timmy elsewhere

At the ASI.

Indeed, there\’s almost certainly a Ph.D thesis in there for someone who wants to do it. Take 20 or 50 different markets (and cover different things, stocks, bonds, derivatives, commodites), in different countries, with different holiday periods. Compare and contrast price volatility in those markets with those holiday periods and reduced volumes and liquidity.

My bet is that we\’ll see increased price volatility in circumstances of reduced liquidity. And to supporters of financial transactions taxes (and the idiocy that is the Robin Hood Tax) if you\’re so sure of your claim, why haven\’t you done this analysis already to prove your point to us?

2 comments on “Timmy elsewhere

  1. Historic data might show increased volatility during holiday periods, but these days I would expect the HFT computers (high-frequency trading) to run their automated algorithms all day and all night.

  2. “why haven’t you done this analysis already to prove your point to us?”

    Two reasons Mr. Worstall:

    1. We haven’t the necessary skills in statistical analysis as all the pro-Robin Hood/Tobin Tax are Art college rejects.

    2. It would prove that we were talking out of or arse and wouldn’t support the necessary policy based evidence making to steal a couple of billion quid from the pockets of Mr. & Mrs. John Q. Taxpayer.

    What do you think we are Mr. Worstall? Stupid.

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