[quote=Aecetia]I am not a trader, more of a holder, but I think anything that restricts trading, acts as a brake and keeps more money out of circulation. I do not think it is either good or bad, just neutral (trading). I think taxing food is stupid and regressive. It’s not like we can stop eating. Smoking yes, eating no. Should we tax unhealthy food? I think we already do and then where do we draw the line? Time for the Libertarians to weigh in on this topic.[/quote]
You trade (mostly) with cash. If the cash is in a bank or in a money market account somewhere, it is in circulation. That cash is part of the reserves that the bank has to loan, or the money market account uses to buy (lend) short term paper. If you then use the cash to buy existing shares of stock, the argument can be made that you have taken money OUT of circulation. It can no longer be lent. If you sell one stock and buy another, there is no increase in money supply. Nothing has been created other than a few cents in fees to the brokers. The stock market is a reflection of the economy. It is not the economy.
