Wall Street’s edge over retail traders remains, as always, structural: superior data; sophisticated, high-frequency trading software. More important, its traders have access to “dark pools,” private exchanges where they send large orders quietly to avoid moving the market against the trade, and “over the counter” markets, where they trade with one another rather than on public exchanges.
In what way does a trade on a dark pool not move the market price? OTC doesn’t mean not trading with the public.
Democratizing the economy, then, involves curbing speculation and pouring national resources into lifting up Americans and rebuilding public institutions. Canceling federal student debt, which President Biden can do without Congress, would grow the economy, relieve the disproportionate debt burdens carried by Black and brown borrowers, and incentivize science and engineering graduates to consider careers benefiting the public good. A modest wealth tax could be redirected to priorities like universal child care. Lawmakers should ensure hedge funds aren’t taking advantage of regulatory blind spots to make themselves too big to fail. A very small financial transaction tax could fund investments in reducing the racial wealth gap through programs like baby bonds.
Ah, that’s why the NYT has published her. She says the fashionable things despite not knowing what she’s talking about.