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

[zdreg]

Quote from bwolinsky:

Yeah, and the probability you find one everyday is unlikely, no matter how much convincing you tell yourself.

traders trade more than 1 stock/day.a transaction tax would add up very quickly making ST trading an impossibility.

again:$250 X 200 trading daysis $50,000 + commissions. at just 2:1 gearing you would be broke before the middle of the year with a flat performance.

maybe the poor performance of publicly traded exchanges is predicting the drying up of liquidity resulting from a transaction tax

 

[the1]

Why would you say this? The market presents opportunity every day, sometimes every hour.

No matter really because the bill will eventually pass and Anaconda is exactly right -- the stock market will operate just fine once it is passed. The futures market may be a different issue altogether. The futures market is highly dependent on speculators. Hedgers try to avoid price risk that speculators assume. If speculators are removed from the market will the futures market function properly? What happens when ADM needs to move 100's of contracts in the grain markets or Exxon wants to take off several hundred contracts in the Oil market.? What about Silver? That instrument is pretty thin as it is. It's a well known fact that speculators reduce price volatility in the futures market. How will these markets be affected? I suppose the banks could take up the slack with their exemptions. Time will tell.

No matter where this goes there are other ways of making money. If you guys are anything like me you probably worked your knuckles raw trying to learn this business. Imagine what you could accomplish if you put the same kind of effort into another business. One door closes, another one opens. I'll be the first to say I hope this doesn't pass but if it does it won't be the end of my life. I'll find something else. Shit, maybe I'll put up a porn site or import Cuban Cigars. Just think of how easy the tax returns will become. Hmmm....maybe this won't be such a bad thing

Quote from bwolinsky:

Yeah, and the probability you find one everyday is unlikely, no matter how much convincing you tell yourself.

 

[Landis82]

Quote from bwolinsky:

I'm also taken aback that this thread continues to exist. Stupid people will say what stupid people say, but that doesn't mean we should pay attention to them.

Congratulations.
You took the words right out of my mouth.
Thanks for showing everyone
what "category" you reside in.

 

[ej420]

The main person behind this proposal is Defazio of Oregon, who has been fighting speculators, etc. for many many years. Currently, this is a fringe-type proposal that doesn't have much traction (in Congress.. Im sure most indivduals with little market knowledge would support this.)

If this thing passes, I would expect volatility to at least double/triple from here, since most liquidity providers (bots) would be affected significantly.

If there are loopholes for the big guys, then it's really stupid, as they are the ones who got us in this mess anyway. That would not be surprising I guess.

 

[tolas]

Quote from zdreg:

be serious. when it is imminent it is too late to stop it. this is all part of the new socialism in america. obama talked center in his presidential campaign. his record in congress was to the left. you left yourself an out by the nonsense of no time soon. if it is is six months you better brush up your resume.

i'm sorry was bush any less socialistic?

 

[listedguru]

Quote from seasideheights:

ANOTHER BILL INTRODUCED.

111th CONGRESS

1st Session

H. R. 1068
To amend the Internal Revenue Code of 1986 to impose a tax on certain securities transactions to the extent required to recoup the net cost of the Troubled Asset Relief Program.


IN THE HOUSE OF REPRESENTATIVES

February 13, 2009
Mr. DEFAZIO (for himself, Mr. WELCH, Ms. SUTTON, Mr. CAPUANO, Mr. WU, Mr. STARK, Ms. DELAURO, and Ms. EDWARDS of Maryland) introduced the following bill; which was referred to the Committee on Ways and Means



http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.1068.IH:

I'm curious how they decide whether this bill (or any bill for that matter) actually comes up for a vote in the House. Does the committee make the decision to bring the bill forward for a vote? At what point does this thing get tossed out if it's not voted on?

It's been awhile since my last goverment class

-Guru

 

[bwolinsky]

Quote from Landis82:

Congratulations.
You took the words right out of my mouth.
Thanks for showing everyone
what "category" you reside in.

Anyone stating that there are benefits to this proposed tax is stupid. Your statements thus far have proven you don't know what you're talking about.

I doubt any bill with such a tax in it will pass.

 

[bwolinsky]

Quote from zdreg:

traders trade more than 1 stock/day.a transaction tax would add up very quickly making ST trading an impossibility.

again:$250 X 200 trading daysis $50,000 + commissions. at just 2:1 gearing you would be broke before the middle of the year with a flat performance.

maybe the poor performance of publicly traded exchanges is predicting the drying up of liquidity resulting from a transaction tax

You know, I was on the floor with Alan Valdes from Hilliard Lyons that you see on TV, and I'll tell you his personal trading style might have only been finding one stock to trade each month that was fluctuating sufficiently from its fair value that he could make money on it consistently. The rest of his trades were from customers.

 

[jj69]

I know he was addressing housing, but did you hear how NObama emphsized for profit flippers referring to speculators? I'm scared.

 

[rsikit]

J heard the Obama thing about speculators but it was in the context thye shouldnt get bailed out and thats true, they should. There was nothing about penalizing them