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

It's funny because if you're speaking about Dean Baker the economist, I really respect his views. He's definitively not an elitist, he's for the general american economy and citizen. Yet he pushes the transaction tax? Man, why talk about a subject you know nothing about, he's only doing harm.

And good message Midas.
 
We have to think like non-traders in order to understand our adversary. If I were someone other than a trader, this proposed tax would look quite appealing.

Since it's likely that institutional and professional players will be exempt, the loss in trading volumes, market liquidity and widening in bid-ask spreads will be modest.

Hey, we need to get tax revenues from somewhere so why not these guys? It worked in the UK and other places and if it worked there then why not here...?

Exempt players will love this and will make more money like they used to in the older days of manipulated market making. These players have clout in Washington, we don't.

There is some economic loss to the US by doing this but there is no denying that there is gain too and not much sympathy for the losers in this. Don't underestimate the "let's stick to the traders" mentality that plays well on Main St and in Washington.

Believe me I hate this proposal but jeez it looks awfully appealing to non traders. Just being candid. All I can do is hope that Obama's free market instincts hold sway but Geithners comments the other day that the President thinks China is manipulating it's currency dows not bode well on that.
 
Tim G should be careful what he wishes for?

A strong currency is an indication of a strong country or strong economy and higher standards of living. China standard of living is way way lower than US for a reason.

US has cheapest housing and food, etc based on average income.

US dollar is strong for a reason.



Quote from Diamond Geezer:

We have to think like non-traders in order to understand our adversary. If I were someone other than a trader, this proposed tax would look quite appealing.

Since it's likely that institutional and professional players will be exempt, the loss in trading volumes, market liquidity and widening in bid-ask spreads will be modest.

Hey, we need to get tax revenues from somewhere so why not these guys? It worked in the UK and other places and if it worked there then why not here...?

Exempt players will love this and will make more money like they used to in the older days of manipulated market making. These players have clout in Washington, we don't.

There is some economic loss to the US by doing this but there is no denying that there is gain too and not much sympathy for the losers in this. Don't underestimate the "let's stick to the traders" mentality that plays well on Main St and in Washington.

Believe me I hate this proposal but jeez it looks awfully appealing to non traders. Just being candid. All I can do is hope that Obama's free market instincts hold sway but Geithners comments the other day that the President thinks China is manipulating it's currency dows not bode well on that.
More...
 
a strong USD currency or strong any currency allows domestic companies to buy foreign assets thus expand.

imports and commodities are cheaper thus raising standards of living. US and all countires compete for same commodities.

the country with strong currency is the master currency. currencies i s. america. carribean islands and even mexico are weak against the usd cause their economies are weak.

a strong currency policy is desirable over weak in the long term.



Quote from Diamond Geezer:

We have to think like non-traders in order to understand our adversary. If I were someone other than a trader, this proposed tax would look quite appealing.

Since it's likely that institutional and professional players will be exempt, the loss in trading volumes, market liquidity and widening in bid-ask spreads will be modest.

Hey, we need to get tax revenues from somewhere so why not these guys? It worked in the UK and other places and if it worked there then why not here...?

Exempt players will love this and will make more money like they used to in the older days of manipulated market making. These players have clout in Washington, we don't.

There is some economic loss to the US by doing this but there is no denying that there is gain too and not much sympathy for the losers in this. Don't underestimate the "let's stick to the traders" mentality that plays well on Main St and in Washington.

Believe me I hate this proposal but jeez it looks awfully appealing to non traders. Just being candid. All I can do is hope that Obama's free market instincts hold sway but Geithners comments the other day that the President thinks China is manipulating it's currency dows not bode well on that.
More...
 

US dollar is strong for a reason. [/B]
More...


yes, flight to quality, panic buying of US treasuries. Other than that the $ is a strong sell.

Not to be alarmist, but I agree with the view that global currencies are doomed. There probably will be some sort of co-ordinated currency realignment and national debts. The UK is looking awfully Icelandic for one.

In the FT Friday it was noted that global debt issuance in 2009 will be 3X that in 2008 and meanwhile the traditional buyers are having their own troubles (China, Japan and oil prodecers ie net exporters). Keep an eye out for serial debt auction failure cropping up as supply for government bonds outstrips demand (a couple have happended already but these were for technical reasons I hear).

The $ strength here is note a sign of anything but massive risk aversion and fear.
 
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