1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
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You'll have to pardon him. He's had past run-ins with Zdreg's insulting manner of special knowledge.
Please keep this thread professional as it has been since January of 2009.
Thank You.
Thank You.
http://blogs.forbes.com/greatspeculations/2010/05/20/finanztransaktionssteuer-nein/
My first forbes blog article. Germany and FTT.
My first forbes blog article. Germany and FTT.
I think the Brits lost their EU say when they opted out of the EU Greek bailout piece. Put your money where your mouth is. Plus the Brits do have a small exemption-filled stock transation tax.
I am concerned about Meltdown 2.0 and Germany's unilateral resurgence in the EU, Euro, fiscal and monetary policy. The anti-TARP backlash and populism will be far greater in Germany than in the UK and US.
Germany does not need to sober up it's rhetoric to a financial service industry being it's top industry. It's more concerned with exporting products. The US and UK backed down on a FTT when push came to shove but Germany may not.
What's different about Germany versus the UK and US backlashes? Germany wants to and has the stomach to deal with the real underlying problems like tackling entitlements, financial irresponsibility, and corruption. That part is good.
But there is a dangerous part too. Germany has an infamous history of attacking bankers, money lenders and traders. Of going over board to discredit the value of finance versus manufacturing. German politicians have recently been seriously castigating speculators, traders and bankers. Scapegoating them for government corruption, budget cheating and over deficit-spending in PIIGS.
Even the German finance minister Schaeuble - previously one of the lone friends blocking a FTT - is reported to be caving in after declaring financial markets "out of control" and saying bankers can't be trusted.
Germany's shocking unilateral move earlier this week to outlaw naked short selling portends more serious action ahead soon. And they did not apologize or propose reversing their unappreciated action to protesting French and other EU members.
The UK is a weakling now and it's pound is one step away from another George Soros round-two pounding. The last pounding in 1995 required central bank intervention to save the currency. Intervention for the Euro is rumored soon.
When the UK opted out of the Greek bailout they lost their minority blocking vote in this EU fiancial crisis. Germany will not listen to the UK if they are not helping to pay the bailout bill.
Germany has said it's Greek bailout is predicated on either a FTT or other bank taxes to recoup the bailout funds. It's the Same concept as Obama's bank tax to repay TARP, only the Germans are making it conditional upfront rather than after-the-fact. They learned the US lesson.
The Greek bailout is not a done deal. The EU, IMF and US want the markets to believe in the bailout to stop a run on liquidity, but there are too many moving parts. Greek strikes and rejection of austerity and a fractured EU structure with too many votes required.
I am still hoping there won't be a FTT in the US or EU. An EU-only FTT would get priced into US transactions since the taxpayer on the other side of the trade (pond) would price it into the trade. That's the argument I made about small retail accounts and pension funds still paying FTT - evev though supposedly exempt from FTT.
In the end, Germany is sensitive to world-wide competitiveness and there will be arguments that the FTT and bank taxes are against the German constitution.
Bottom line. If meltdown 2.0 is much more severe than meltdown 1.0, Germany may want it's own way or threaten to leave a crumbling Euro. Obama and Emmanuel say no crisis should be wasted. Will Germany see this crisis as an opening to reassert itself?
Sent from my iPhone
I am concerned about Meltdown 2.0 and Germany's unilateral resurgence in the EU, Euro, fiscal and monetary policy. The anti-TARP backlash and populism will be far greater in Germany than in the UK and US.
Germany does not need to sober up it's rhetoric to a financial service industry being it's top industry. It's more concerned with exporting products. The US and UK backed down on a FTT when push came to shove but Germany may not.
What's different about Germany versus the UK and US backlashes? Germany wants to and has the stomach to deal with the real underlying problems like tackling entitlements, financial irresponsibility, and corruption. That part is good.
But there is a dangerous part too. Germany has an infamous history of attacking bankers, money lenders and traders. Of going over board to discredit the value of finance versus manufacturing. German politicians have recently been seriously castigating speculators, traders and bankers. Scapegoating them for government corruption, budget cheating and over deficit-spending in PIIGS.
Even the German finance minister Schaeuble - previously one of the lone friends blocking a FTT - is reported to be caving in after declaring financial markets "out of control" and saying bankers can't be trusted.
Germany's shocking unilateral move earlier this week to outlaw naked short selling portends more serious action ahead soon. And they did not apologize or propose reversing their unappreciated action to protesting French and other EU members.
The UK is a weakling now and it's pound is one step away from another George Soros round-two pounding. The last pounding in 1995 required central bank intervention to save the currency. Intervention for the Euro is rumored soon.
When the UK opted out of the Greek bailout they lost their minority blocking vote in this EU fiancial crisis. Germany will not listen to the UK if they are not helping to pay the bailout bill.
Germany has said it's Greek bailout is predicated on either a FTT or other bank taxes to recoup the bailout funds. It's the Same concept as Obama's bank tax to repay TARP, only the Germans are making it conditional upfront rather than after-the-fact. They learned the US lesson.
The Greek bailout is not a done deal. The EU, IMF and US want the markets to believe in the bailout to stop a run on liquidity, but there are too many moving parts. Greek strikes and rejection of austerity and a fractured EU structure with too many votes required.
I am still hoping there won't be a FTT in the US or EU. An EU-only FTT would get priced into US transactions since the taxpayer on the other side of the trade (pond) would price it into the trade. That's the argument I made about small retail accounts and pension funds still paying FTT - evev though supposedly exempt from FTT.
In the end, Germany is sensitive to world-wide competitiveness and there will be arguments that the FTT and bank taxes are against the German constitution.
Bottom line. If meltdown 2.0 is much more severe than meltdown 1.0, Germany may want it's own way or threaten to leave a crumbling Euro. Obama and Emmanuel say no crisis should be wasted. Will Germany see this crisis as an opening to reassert itself?
Sent from my iPhone
Nonsensical union prattle (translated):-
http://translate.googleusercontent....le.com&usg=ALkJrhj-VABb4UoNIK0-jvUdAAsrqL38nw
Here's my bet:-
The rest of the G20 countries will politely decline the most unviable (tt) of Germany's approaches.
No informed leadership will risk financial, political and social autonomy as a prop-up favour for a dodgy Euro zone.
They will not be sucked in. Too much to lose.
Berlin today ----
"The Chancellor is angry
"... It reaffirms that the 20 leading economic powers in the world (G20) at some point have to get results. would otherwise "the people to despair of us,"
"Not an hour later, the smart Canadian Financial Secretary Tiff Macklem explained politely that he had much sympathy for countries like Germany that have based their banks with billions and they want to ask for it now to checkout. "But in Canada we did not have to save our banks," adds Macklem added kindly. "And we doubt that you can make banks more stable by taxation."
Merkel reacted angrily. National obstinacy was the wrong signal. "We can not say that if it was all good with me, I am not interested in this or that problem."
Sorry Madam Angry, YES, Canada has every right to say we are not interested in jeopardising our population.
When Merkel fails to force G20 to do her bidding, we'll see how quickly they proceed to further jeopardise themselves.
http://translate.googleusercontent....le.com&usg=ALkJrhj-VABb4UoNIK0-jvUdAAsrqL38nw
Here's my bet:-
The rest of the G20 countries will politely decline the most unviable (tt) of Germany's approaches.
No informed leadership will risk financial, political and social autonomy as a prop-up favour for a dodgy Euro zone.
They will not be sucked in. Too much to lose.
Berlin today ----
"The Chancellor is angry
"... It reaffirms that the 20 leading economic powers in the world (G20) at some point have to get results. would otherwise "the people to despair of us,"
"Not an hour later, the smart Canadian Financial Secretary Tiff Macklem explained politely that he had much sympathy for countries like Germany that have based their banks with billions and they want to ask for it now to checkout. "But in Canada we did not have to save our banks," adds Macklem added kindly. "And we doubt that you can make banks more stable by taxation."
Merkel reacted angrily. National obstinacy was the wrong signal. "We can not say that if it was all good with me, I am not interested in this or that problem."
Sorry Madam Angry, YES, Canada has every right to say we are not interested in jeopardising our population.
When Merkel fails to force G20 to do her bidding, we'll see how quickly they proceed to further jeopardise themselves.
Germany can't just override another member state on taxation. Unanimity is required in key areas such as foreign and defence policy, social security and taxation issues.
Also note what Schaeuble said this morning:
http://imarketnews.com/node/13807
The minister (Schaeuble) reaffirmed that the German government will lobby for a financial transaction tax on the EU level. If the UK government blocked that, Germany would aim for the introduction of such a tax in the Eurozone, he said. However, he added that "I cannot promise a majority" for a financial transaction tax even on the level of the Eurozone.