Forum Post: Wealth redistribution: Stop short-sales on Wall Street

The wealthy argue that ending their tax cuts constitutes a redistribution of wealth.

I would argue that Wall Street day traders are redistributing wealth from middle class investors to the top 1%. I work an average of 10-12 hours each day as a scientist trying to find solutions to the looming energy crisis. I save and invest, but do not have the time or interest in becoming a day-trader. Why are my investments worth less now than what I've paid for them on average over the last 3 years? It's not because the companies I've invested in are not profitable. Something else is at work.

Short-selling is a prime example of Wall Street's redistribution of wealth from the middle class to the top 1%. Lend me 3 million dollars worth of shares. I will sell them for 3 million dollars. This sale drives the price of the shares down, because it appears that the shares are unwanted. I will then buy back the shares for less money, return them to you, and make a huge sum of money on the transaction. Wall Street day traders do NOT add value to the economy. They are simply playing market fluctuations to make money out of thin air. They are stealing from the investments of the middle class who work hard and invest as a means of saving for the future. We need to put an end to short sales, and put an end to day trading all together. There is NO VALUE ADDED TO THE ECONOMY BY DAY-TRADERS.

I look forward to reading your comments.