Robinhood testified before the House Financial Services Committee last week. Not the bow and arrow wielding saint of Sherwood Forest, the stock trading app that a young person in your life has on their smartphone. Turns out, it’s apps like Robinhood at the center of GameStop’s stock explosion earlier this year that we’ve all heard about, even if we didn’t fully understand what it was.
During the outcry, Robinhood actually suspended purchases of GameStop shares. They simply stopped people from buying or selling even if they wanted to. Putting the brakes on these hobbyist traders trying to participate in the market ultimately led to the app’s makers being summoned to Congress to defend such a controversial and legally dubious decision.
Good news is that lawmakers appear to be taking this incident seriously. In fact, they may soon introduce legislation that regulates the power of Wall Street and hedge funds to make more just for the rest of us.
The bad news do they run the risk of moving so quickly that they cause unintended consequences for the viewers of this whole episode – the elderly of Wisconsin. One proposal under discussion as part of a global package is a Financial Transaction Tax (FTT). You may have heard of it in other ways, such as a tax on your retirement.
An FTT would levy a tax on every sale or transaction of a stock in the market. How is this a tax on your retirement? …
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- Headline: A tax on financial transactions would hurt seniors
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