1/4% Tax on all stock trades pushed in NY Times today

http://www.hfmweek.com/news/1698497...Oct&utm_source=emailCampaign&utm_medium=email

Financial Transaction Tax would damage finance, says MFA

Global alternatives trade body the Managed Funds Association (MFA) has told HFMWeek that a Europe-wide tax on financial transactions, proposed by the European Commission last month, would “exacerbate difficulties for countries, individuals and investors.”

The criticism comes after proposals for a tax on all financial transactions were floated by the European Commission last month. European policymakers appear keen to ensure it is debated further during the next meeting of the G20 in November.

Richard H Baker, MFA president and CEO, said: “The imposition of such a tax, at this tenuous period, would only exacerbate the difficulties of the countries, individuals and investors that continue to confront the complexities of a fragile global economy.”

“In addition, it would impair those investors, pensioners, issuers and countries who desperately seek efficient, liquid and well-functioning financial markets."

The Alternative Investment Management Association (Aima) outlined its objections in April this year, saying: “We consider that the proposed taxes could, unless applied globally, lead to migration outside the EU and redomiciliation of funds which have already recently re-domiciled from tax-neutral jurisdictions to EU jurisdictions.”

A report released by investment banking firm Keefe, Bruyette & Woods indicated that such a tax would affect the high-frequency trading sector more than any other, meaning so-called “black-box” hedge funds, which trade using computer-driven algorithms, would be worst hit.

The UK government has outlined its opposition to the proposals, which would hit the UK hardest because of its large financial sector.

A spokesman from the UK Treasury told HFMWeek the government had no objection to the tax in principle but it must be applied globally. He added: “There are a number of practical issues that need to be worked through. These issues are underlined by the Commission’s own analysis.”
 
After reading the "Impact Report," there has to be at least one person in either Germany or France smart enough to ask the question: Who bears the burden of the FTT? The banks? Or the 500,000 people without jobs as a result of the tax?


Quote from FightTheFuture:

Perhaps Germany and France really don't like the FTT since both countries abolished their FTTs in 1991 and 2008. Or perhaps the European Commission's Impact Statement for FTT released last week reveals, at the proposed introductory rate, admits there will be an annual GDP loss of 0.5 percent. That's €61 billion or 500,000 lost jobs before the tax rate goes up.
More...
 
This article is not related directly to the FTT, but it demonstrates that Eurozone economic policy can hang by a thread -- the vote of one small, poor country.
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Tiny Slovakia on Tuesday defied its mightier neighbors and rejected an expanded rescue fund to save Europe’s ailing nations and troubled banks, effectively holding ransom the region’s plan to fend off a broader economic crisis.

http://www.washingtonpost.com/world...bailout-plan/2011/10/11/gIQAvKaHdL_story.html
 
Quote from tomdavis:

This article is not related directly to the FTT, but it demonstrates that Eurozone economic policy can hang by a thread -- the vote of one small, poor country.
........................................................

Tiny Slovakia on Tuesday defied its mightier neighbors and rejected an expanded rescue fund to save Europe’s ailing nations and troubled banks, effectively holding ransom the region’s plan to fend off a broader economic crisis.

http://www.washingtonpost.com/world...bailout-plan/2011/10/11/gIQAvKaHdL_story.html
More...

This in a nutshell illustrates the defective nature of a truly democratic union such as the EU. Had the EU adopted instead the much exalted model of corporate fascism, such as the U.S. has adopted, the EU countries could immediately socialize bank and corporate loses and their problems would be history. Sadly, the democratic nature of the EU can not accommodate such an efficient solution.

Should the Slovaks prove too recalcitrant for their own good, perhaps Merkel and Sarkozy can work through the U.S. State Department in cooperation with the U.S. CIA to "arrange" for the necessary assassinations. I understand Henry Kissinger may be available as an experienced consultant on methods for removing "roadblocks" to "enlightened" government policy. :D

http://www.spartacus.schoolnet.co.uk/COLDallende.htm
http://seattletimes.nwsource.com/html/nationworld/2011578353_kissinger11.html
http://www.bostonphoenix.com/boston/news_features/dont_quote_me/documents/00671039.htm
 
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