Ah yes, the proposal du jour. Clearly *if* that "sticks" this tax becomes a different animal.
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
Yep you can't divide the two. If you take away my ability to speculate you take away my ability to break out of my mundane job. You lock me into the same mindless task day after day. You take away my ability to dream of something more. You lock me in to working for someone else the rest of my life. You make me not much more than a slave.
The United States has been called over and over the land of opportunity. Why because you have the opportunity to speculate. To take a chance, to take a risk at gaining a more prosperous life. You could be born with nothing in this country and have a chance to make your life better. Not because government programs and handouts are going to pull you out but because you have freedom. There are countless scores who have escaped poverty by starting a business which is speculating.
Freedom is what the people pushing this bill want to take.
Don´t you love it when governments mess up and then blame everyone else but themselves?
I mean, the people that truly created this mess are the ones in charge of fixing it, and by doing what? More of the same.
This is an attempt to perpetuate the power structure in this country. A feudal system per say, where a small ruling majority keeps the large minority under wraps.
I mean, the people that truly created this mess are the ones in charge of fixing it, and by doing what? More of the same.
This is an attempt to perpetuate the power structure in this country. A feudal system per say, where a small ruling majority keeps the large minority under wraps.
Get it through your thick skulls. Market Makers would not be subject to such tax. The liquidity will still be there. The market making entities will have some fat profit margins to enjoy.
The market will simply resemble one that existed 2-3 decades ago, where 90%+ of the people could not trade on a short timeframe due to lack of technology and high commissions.
Please stop acting like most of the armies of daytraders & HFT hedge funds would be missed the slightest bit if they were gone. Most of the volume nowdays noise. Seriously, think back to 1980s when the volumes were a fraction of what they are today. Trading was still quite active, with plenty of speculators to provide price discovery, along with mutual funds, pensions funds and small retail guys doing some swing trading & investing. Companies still went IPO.
If this tax actually went through without any exemptions, you will have much more serious issues to worry about.
Here is the paradox:
This tax is pushed to raise billions per year from all of the speculative transactions that occur in our "bloated" markets. Best of all it will eliminate the speculators and their speculative activity that make up most of the taxable transactions in the bloated markets.
You can't have it both ways. It defies logic.
Wiki definition:
A paradox is a statement or group of statements that leads to a contradiction or a situation which defies intuition.
This tax is pushed to raise billions per year from all of the speculative transactions that occur in our "bloated" markets. Best of all it will eliminate the speculators and their speculative activity that make up most of the taxable transactions in the bloated markets.
You can't have it both ways. It defies logic.
Wiki definition:
A paradox is a statement or group of statements that leads to a contradiction or a situation which defies intuition.
The MM's handle most of the trading coming through and tighten or widen spreads according to liquidity. Go look at otc stocks and see how hard it is to get good fills buy and sell and how the market makers are able to manipulate the spreads because of no liquidity. Those wide spreads punish you on the buy and sell. Point is lack of liquidity will hurt the market and hurt main street. The market makers will find a way to make money on the spread. Those pushing this tax have no clue. The fat cats will get fatter the retail investor and small trader will suffer.
Welcome back to the 80's when the markets were less efficient. Locked out the small guy and let only wall Street insiders make any money. This tax will accomplish the opposite of what those pushing it say it will.
Even if exempted wouldn't 401k plans be affected by the wider market spreads as fund managers move in and out of stocks. Adding 0.5% yearly cost (due to spreads, not the tax) to a modest $100,000 401k will cost the 'exempted' middle-class employee tens of thousands of dollars over 30 years. And this doesn't include the effect of this tax on depressing the markets generally (would we have had quite the rally of the last 9 months if this tax had been in place?).
Just some observations.
I live approx. 30 minutes from the Canadian border, and have made some cursory checks in exploring the steps to becoming a Canadian citizen, should this idiotic tax eventually pass. I'm sure the asswipe politicians would put in strict language baring Americans from trading in other countries to avoid the tax. But they can't stop someone from becoming a legal citizen of another country that doesn't have a trader tax, therefore, they wouldn't be able to charge that person with the tax once they attain citizenship. Of course, all of this would be moot if a Tobin Tax is passed internationally. This is why the odds of this passing domestically is very low, and is stronger on an international scale.