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

Not good......14 more months of headlines.

At UN, French President Sarkozy Demands Financial Transaction Tax on Banks; Tobin Genie Now Out of the Bottle Worldwide; Time to Mobilize Against Finance Capital on This Issue

Webster G. Tarpley
TARPLEY.net
September 22, 2010


French President Nicolas Sarkozy has spoken the magic words: “Tax the banks,” and this is the big news from the opening day of this year’s UN General Assembly plenary session in New York. For reasons which have much to do with internal French political struggles, Sarkozy has thus placed the central question of the age on the international agenda: Who will pay the costs of the world economic depression? Will it be the bankers, speculators, derivatives mongers, asset strippers, and hedge fund hyenas who have created the current depression through the bubble economy of the last decades? Or, as the Koch-headed dupes of the Tea Party demand, will the cost of the depression be taken out of the hide of average working people around the globe under the banner of “free-market” swindles once again?

The financial transaction tax is the key to making the bankers pay for their own crimes.

“We have no right to shelter behind the economic crisis as supposed grounds for doing less,” said Sarkozy, who noted that government budgets are everywhere under tremendous pressure. “Finance has globalized, so why should we not ask finance to participate in stabilizing the world by taking a tax on each financial transaction?” “I want to tell you of my conviction that while all developed countries are in deficit, we must find new sources of financing for the struggle against poverty, for education and for the ending of the planet’s big pandemics.”1 Sarkozy stressed that he intends to campaign for the bank tax when France assumes the presidency is head of the Group of 20 and Group of Eight countries for a year, starting in November. That will keep the Tobin tax in the public eye over the next 14 months, at minimum.

http://tarpley.net/2010/09/22/at-un...bilize-against-finance-capital-on-this-issue/
 
Sarkozy is just pushing the globalists' agenda, or he just doesn't have a idea on how financial markets work?
What the FTT does is taxing liquidity, not speculation. Whoever says a 0.05% isn't much is ignorant about how incredibly thin are profit margins are in this business - for market makers and scalpers they may be of 0.10% or even 0.02%, so a tax like this will turn the market into a OTCBB clone, and while that's a funny market, its not a place to do serious business there.
If they want to curb speculation, that's done by setting daily/weekly limit moves on the underlying instruments.

And getting back the money on bank bailouts is quite simple: either make the banks dilute (issue shares for the lender) and/or issue bank bonds.
Governments would get the money back plus interest via the bank stock' dividends.
 
Quote from TapeFighter:

Sarkozy is just pushing the globalists' agenda, or he just doesn't have a idea on how financial markets work?
What the FTT does is taxing liquidity, not speculation. Whoever says a 0.05% isn't much is ignorant about how incredibly thin are profit margins are in this business - for market makers and scalpers they may be of 0.10% or even 0.02%, so a tax like this will turn the market into a OTCBB clone, and while that's a funny market, its not a place to do serious business there.
If they want to curb speculation, that's done by setting daily/weekly limit moves on the underlying instruments.

And getting back the money on bank bailouts is quite simple: either make the banks dilute (issue shares for the lender) and/or issue bank bonds.
Governments would get the money back plus interest via the bank stock' dividends.
More...

A quick math check on this small tax equates to a 13 pip spread increase in the cost of buying and selling EUR/USD. That's akin to what money changers charge. And does it just stop there? Will EURO futures then have a 13 pip effective spread when trading a contract, etc? Will this be added to the already exorbitant exchange rates banks and money changers charge when traveling?

If you think this is small peanuts or you don't give a crap because you trade stocks, this will end up affecting just about everything since everything is global in nature.
 
Quote from cstfx:
If you think this is small peanuts or you don't give a crap because you trade stocks, this will end up affecting just about everything since everything is global in nature.
More...
What I said is that whoever thinks that 0.05% is "small" doesn't know what the hell they are talking about. Even 1 pip is too much.

The FTT is a scam for investors, nothing more nothing less.
 
Quote from TapeFighter:

What I said is that whoever thinks that 0.05% is "small" doesn't know what the hell they are talking about. Even 1 pip is too much.
More...

Plus, you know that if a FTT come to fruition, politicians will simply start raising the % on the fee whenever they feel like they need more money to dick around with.
 
The recent experience of the swedes with the transaction tax led to all swede stocks trading in london. they lost their own market and no revenue. G20 would be fools to do so. All trading would simply move to hong kong and singapore if that happens. Those nations appreciate speculation. Singapore has even given 0% tax if you are a trader, not to mention no capital gains tax in hong kong and singapore both. I do hope the europeans stop short of taking the last step.
 
ECB's Trichet: "Major difficulties" with financial transaction tax

http://www.monstersandcritics.com/n...r-difficulties-with-financial-transaction-tax

Brussels - Introducing a financial transaction tax in the European Union would present 'major difficulties' as it could cause capital to flee elsewhere, the head of the European Central Bank (ECB), Jean-Claude Trichet, warned on Monday.

EU leaders have been toying for months with the idea of a financial transaction tax, which could partially refund them for the billions of euros they had to spend to rescue banks from the 2008 financial meltdown.

France and Germany, the EU's most influential members, are keen, but Trichet said it was the ECB's 'duty to signal major difficulties when there are major difficulties.'

Speaking to the European Parliament in Brussels, Trichet explained that according to the ECB's analysis the financial transaction tax would only work if it was applied globally - an unlikely prospect given the differences that emerged over it at the latest G20 summit.

He added that it was 'not advisable' for the EU to proceed unilaterally, as capital would flee to countries not applying the tax.

However, Trichet said he was sympathetic to the rationale behind the financial transaction tax, also known as 'Tobin Tax' as it was originally proposed in the 1970s by US economist and Nobel laureate James Tobin.

'I understand (that) it can be an idea that is seductive,' the ECB head told EU lawmakers.
 
Update on Filibuster Reform:

It looks like the dems are going to go full speed ahead in January and try to pass filibuster reform. Let's hope they don't succeed.

"Senate Democrats not backing down on filibuster reform despite expected losses."

http://thehill.com/homenews/senate/120987-senate-dems-not-backing-down-on-filibuster-reform

"Changing the filibuster rules will be an uphill climb — even though it would likely only require 51 votes in the new Congress. Several Democratic centrists oppose changing the chamber's rules. Furthermore, Republicans may capture control of the House and/or Senate this fall, rendering filibuster reform dead. Republicans have vowed not to pass such a measure."

Udall still pursuing filibuster reform:

http://www.santafenewmexican.com/Opinion/Our-view-Udall-still-pursuing-filibuster-reform

Udall's remedy for tyranny by the minority, however, is simplicity itself: The U.S. Constitution, in Article I, Section V, allows both the Senate and the House of Representatives to set their own rules at the beginning of each Congress — every two years. To do so requires only a majority.

"So, assuming the Democrats come out of the Nov. 2 election with 51 seats, they could lower the 60-vote barrier to, say, 57, 55 or even 51; whatever the majority decides when the 112th Congress convenes."

I can't see filibuster reform passing as their are many centrist democrats who would be oppsed but it's a scary thought nontheless...

-Guru
 
Quote from listedguru:

Update on Filibuster Reform:

It looks like the dems are going to go full speed ahead in January and try to pass filibuster reform. Let's hope they don't succeed.

"Senate Democrats not backing down on filibuster reform despite expected losses."

http://thehill.com/homenews/senate/120987-senate-dems-not-backing-down-on-filibuster-reform

"Changing the filibuster rules will be an uphill climb — even though it would likely only require 51 votes in the new Congress. Several Democratic centrists oppose changing the chamber's rules. Furthermore, Republicans may capture control of the House and/or Senate this fall, rendering filibuster reform dead. Republicans have vowed not to pass such a measure."

Udall still pursuing filibuster reform:

http://www.santafenewmexican.com/Opinion/Our-view-Udall-still-pursuing-filibuster-reform

Udall's remedy for tyranny by the minority, however, is simplicity itself: The U.S. Constitution, in Article I, Section V, allows both the Senate and the House of Representatives to set their own rules at the beginning of each Congress — every two years. To do so requires only a majority.

"So, assuming the Democrats come out of the Nov. 2 election with 51 seats, they could lower the 60-vote barrier to, say, 57, 55 or even 51; whatever the majority decides when the 112th Congress convenes."

I can't see filibuster reform passing as their are many centrist democrats who would be oppsed but it's a scary thought nontheless...

-Guru
More...





After doing some research, here is a list of Senate Democrats that are opposed in supporting filibuster reform:

Sen. Diane Feinstein - California
Sen. Daniel Akaka - Hawaii
Sen. Mark Prior - Arkansas
Sen. John Tester - Montana
Sen. Ben Nelson - Nebraska
Sen. Mary Landrieu - Louisiana
Sen. Jay Rockefeller - West Virgina
Sen. Russ Feingold - Wisconsin
Sen. Carl Levin - Michigan - Levin supports dropping the 60 vote threshold to begin debate on legislation, but not for final votes on bills.


As it look right now, Democrats will probably end up with around 53 Senate seats after the election. 51 votes would be needed to pass filibuster reform, if they use the scumbag tactics that Obama encourages them to move forward with. Although this is something to keep an eye on, I think it's highly unlikely this would ever occur. Many Senate Democrats know that in 2012, they have 23 of their seats up for grabs, while the GOP only has to defend 10 seats. The last thing many of these Democrats want to do is make radical changes to filibuster rules, especially when the American public is now "finally" starting to comprehend what a radical liberal Obama truly is!!!
 
Quote from rc8222:

After doing some research, here is a list of Senate Democrats that are opposed in supporting filibuster reform:

Sen. Diane Feinstein - California
Sen. Daniel Akaka - Hawaii
Sen. Mark Prior - Arkansas
Sen. John Tester - Montana
Sen. Ben Nelson - Nebraska
Sen. Mary Landrieu - Louisiana
Sen. Jay Rockefeller - West Virgina
Sen. Russ Feingold - Wisconsin
Sen. Carl Levin - Michigan - Levin supports dropping the 60 vote threshold to begin debate on legislation, but not for final votes on bills.


As it look right now, Democrats will probably end up with around 53 Senate seats after the election. 51 votes would be needed to pass filibuster reform, if they use the scumbag tactics that Obama encourages them to move forward with. Although this is something to keep an eye on, I think it's highly unlikely this would ever occur. Many Senate Democrats know that in 2012, they have 23 of their seats up for grabs, while the GOP only has to defend 10 seats. The last thing many of these Democrats want to do is make radical changes to filibuster rules, especially when the American public is now "finally" starting to comprehend what a radical liberal Obama truly is!!!
More...

Thank you for the update. I agree it's worth watching but highly unlikely to happen.

-Guru
 
You must log in or register to reply here.
Back
Top