One market-oriented mechanism would be a tax increase on speculation, combined with a tax decrease on investing. If it became less profitable for institutional shareholders to speculate on short-term price movements, and more profitable to invest for the long term, their holding periods might increase, and they'd likely care more about the financial health and compensation structures of the businesses they own. This could take the form of a graduated 60% speculation tax on stocks and equity-based derivatives held for less than one year, which tapered down to, say, 5% after a few years. I'm not the only investor who has thought of such a plan. Warren Buffett (perhaps facetiously) once suggested a 100% short-term capital gains tax, while John Bogle has advocated a 50% rate. Ex-American Express (NYSE: AXP) executive and former IBM (NYSE: IBM) CEO Louis Gerstner has suggested a similar plan. As someone who feels the economic impact of this crisis, you should love a higher tax on speculators, because it would align institutional shareholders with the long-term health of the companies they own. That is a necessary step to preventing another financial time bomb. Without such a shift in incentives, they would have limited reason to demand responsible management, and a crisis like this one would be more likely happen again. http://www.fool.com/investing/value/2009/07/12/the-coming-financial-time-bomb.aspx THERE'S A COMMENT SECTION AT THE END OF THAT URL. PLEASE WRITE THERE & FOLLOW UP WITH AN EMAIL TO MOTLEY FOOL DIRECTLY IF POSSIBLE. THANKS.