Looking back at Mike Bloomberg’s brutal week

Michael Bloomberg has had better weeks.

First it was announced that if he wins in his bid for the presidency, he would sell his financial services and media company.

Bloomberg LP is a cash cow, as anyone who has ever shelled out $24,000 and up for one of its financial data terminals can attest. But in reality, the terminal business — as well as Bloomberg’s Tradebook order-routing system — are facing increasing competition.

For starters, traders are becoming an endangered species on Wall Street, and for those who still practice the fine art, there are lots of rival choices for market news and data and trading platforms being offered at a fraction of the cost.

In fact, with the technological advancements in fintech software, 10 years from now there may be far fewer Bloomberg terminals around.

You need only look at Morgan Stanley’s just-announced $13 billion acquisition of E-Trade to see that even trading for “free” is getting competitive — and that’s going to further squeeze Bloomberg’s Tradebook margins.

Then the billionaire announced that he would implement a financial transaction tax — which makes zero sense. It merely inflicts a layer of fees upon the saving public that will drive costs up and returns down.

Such a tax would also wreck the quantitative trading firms that provide so much of today’s market liquidity. Liquidity acts as a shock absorber to the market’s ups and downs. Without an ample amount, in times of need, stocks and bonds would fall further as everyone heads to the exit.

Plus, there was his stunningly poor performance at the Feb. 19 Democratic candidates’ debate.

Bloomberg should use his money for better things than running for president. If his policies were any good, he wouldn’t need to spend a fortune to convince anyone.

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