Is the Long-term Stock Exchange an idea whose time has come?
The discussions of a Long-term Stock Exchange (LTSE), or an exchange that would reward investors the longer they hold their shares, flow out of Silicon Valley, and a useful summary by The Wall Street Journal can be found here. Contrarians argue it is just startups with no short-term revenue seeking relief from the rules of the traditional exchanges. They are right on the intentions but wrong on the impact. The impact is something TBR described in a recent commentary as an impending Digital Dust Bowl.
If we do not want to exacerbate the impending economic disruptions that will accelerate as emerging technologies commercialize, we must have a national debate on how we regulate economic activity as the underlying economy pivots to radically different operating characteristics. Rules designed for a manufacturing age cannot hold up in the emerging, technology-disrupted knowledge work era — you would not write code today using 1980s software, so why are we stuck with 1980s regulations?