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

risktaker · Dec 2, 2009

Ha! That would be the end of the Caymans as a 'financial' center/tax haven. This must be a 'trial balloon' from some idiot who has no idea of the consequences of such a stupid move by a supposed 'tax haven' domicile.

Quote from MrPowerBallad:

Oops, looks like there's someone in Cayman Islands now proposing a trans tax (just an op-ed piece, nothing big):

http://www.caymannetnews.com/news-19483--8-8---.html

Perhaps the time is now right for Cayman to show the rest of the world the way forward in raising public revenue from financial transactions occurring within our borders or with entities registered or licensed here.

Billy Thunder · Dec 2, 2009

Quote from risktaker:

Ha! That would be the end of the Caymans as a 'financial' center/tax haven. This must be a 'trial balloon' from some idiot who has no idea of the consequences of such a stupid move by a supposed 'tax haven' domicile.

From the article, enough said:
For quite some time now we have been advocating the desirability â or even the necessity â of finding some means or another to impose a small levy on money transfers and/or other financial transactions to which the Cayman Islands act as host or counterparty.

loufah · Dec 2, 2009

Quote from OldTrader:

And then comes the commission increases. So you think the tax is alot, PLUS the increases spread, now add in that increased commission. You'll need a major move just to get even.

And that is the point. The sponsors of the bill ostensibly want people to buy and hold rather than do short-term speculation, in order to lend stability to the markets. Other supporters like Krugman are even more specific: they hate high frequency traders who don't do anything socially redeeming and want the practice curtailed.

I'm one of the people that Krugman hates; I get out of an ES trade after a .20% move, and don't contribute anything socially redeeming to the market. The bill will kill my livelihood but has a chance of improving the rest of the country. It was a nice ride while it lasted.

Stok · Dec 2, 2009

Whether true or not, someone in another room said they heard that defagio is trying to getting rid of Geitner...makes sense, since he is big time against this tax.

This gets more and more comical!! Hope we can make it till Nov 2010 w/o this free enterprise destruction, negative net revenue, horrible tax passing in any shape or form!!

Stok · Dec 2, 2009

First, after analyzing the landscape and talking to others about this tax...I really do not think it will pass in any form. Saying that, here's the short list (stocks to short) just in case

:

CME
IBKR
AMTD
TRAD
SCHW

of course there a probably many more, just quick thinking here.

So, we all short the hell out of these if this passes and make serious $$, then go find jobs to pass the time until they revoke the tax...even defagio only wants it until all TARP is paid back...and the GOP is coming down the hill storming and will spank these liberals in 2010.

MrPowerBallad · Dec 2, 2009

Quote from Stok:

trying to getting rid of Geitner

Just another reason for Obama to not want to sign anything with Defazio's name on it . . . plus remember Defazio was the only democrat to change his vote from yes to no for Obama's stimulus bill.

rsikit · Dec 2, 2009

Quote from Stok:

First, after analyzing the landscape and talking to others about this tax...I really do not think it will pass in any form. Saying that, here's the short list (stocks to short) just in case :

CME
IBKR
AMTD
TRAD
SCHW

of course there a probably many more, just quick thinking here.

So, we all short the hell out of these if this passes and make serious $$, then go find jobs to pass the time until they revoke the tax...even defagio only wants it until all TARP is paid back...and the GOP is coming down the hill storming and will spank these liberals in 2010.

I agree, well I get more nervous each day as we get closer to a bill, I still do not think it will pass the sneate but I still fight on. But keep one thing in mind if it does pass and raise the revenue, they wont repeal it. If it makes it as far as tarp repayment without damaing the economt you know those bastard politicans will keep the tax!

Giucco · Dec 2, 2009

I believe this tax may pass but there is no way that I see all 20 countries of the G20 agreeing to this. All you need is just one country to dissent. If I understand one thing about human nature, it is that there will always be that one other person that will buck the trend. Stay hopeful my friends.

Stok · Dec 2, 2009

The thing is, this bill has been inserted into the stimulus bill and I think a few others, and it was ALWAYS been rejected with the same senate/house we have right now.

Doesn't mean all this hollering will change a few minds and the spin about the "jobs bill"....just it has been tried several times since obama-nation was elected and was rejected (by saner minds).

moonmist · Dec 2, 2009

Quote from Stok:

First, after analyzing the landscape and talking to others about this tax...I really do not think it will pass in any form. Saying that, here's the short list (stocks to short) just in case :

CME
IBKR
AMTD
TRAD
SCHW

of course there a probably many more, just quick thinking here.

So, we all short the hell out of these if this passes and make serious $$, then go find jobs to pass the time until they revoke the tax...even defagio only wants it until all TARP is paid back...and the GOP is coming down the hill storming and will spank these liberals in 2010.

I can tell that you are a real trader. Making money is always the top priority under any circumstances.

If US government does impose the transaction tax, I'll short the hell out of SPY, until Republicans take over the Senate and House of Representatives.