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

Quote from sheda:

I propose to take the Robin Hood (RH) proposal a step further by giving someone (probably the manager of the Central Bank) the power to raise and lower the RH fee on speculative trades. In times of market volatility, when the traders are dumping their risky assets, the fee can be raised, quite considerably even if panic is setting in. ///
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So they'd like to increase volatility when stocks are declining? They probably don't realize that's what it'd actually do.

Any moron that supports financial transactions taxes should be shot, and never allowed to vote or hold public office.

This includes any senator that supports FTT in any country at any level of government, and if they can prove they've learned the error of their ways they can do so by firing their economic advisors publicly to identify a scapegoat and keep some chance of holding office.

Brazil's Bovespa is in for an extremely long term bear market.
 
The Cspan talk posted above was interesting, it would sadly seem they have a way of interfering with people trading out side of the taxed country they live in.

"Participants debated for and against the implementation of a financial transaction tax on trades of stocks, bonds, derivatives and other investments. They focused on the need to improve revenues to reduce deficit spending, how the taxes have been used in other countries, and the potential impact on the economy.

A financial transaction tax is a small tax placed on a specific type of financial transaction"


http://www.c-spanvideo.org/program/300384-1
 
Dr Merkel is expected to discuss with Mr Sarkozy the proposals from last month’s summit to, pending parliamentary approval, empower the €440 billion European Financial Stability Facility from September and buy sovereign bonds and recapitalise struggling banks.

Other proposals reportedly on the table include a fresh push for a financial transaction tax and a wish for more regular meetings of euro zone leaders.

http://www.irishtimes.com/newspaper/finance/2011/0816/1224302524627.html
 
Quote from sheda:

The Cspan talk posted above was interesting, it would sadly seem they have a way of interfering with people trading out side of the taxed country they live in.

"Participants debated for and against the implementation of a financial transaction tax on trades of stocks, bonds, derivatives and other investments. They focused on the need to improve revenues to reduce deficit spending, how the taxes have been used in other countries, and the potential impact on the economy.

A financial transaction tax is a small tax placed on a specific type of financial transaction"


http://www.c-spanvideo.org/program/300384-1
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The point is not that we allow arbitrary measures of small.

<b>Any tax creates a deadweight loss, and in financial transactions unless agreed upon for commission or advice is so deleterious that anybody who considers ftt as a solution is deluded. There is no economist with credibility that would advocate this, and anybody who wants one is a complete imbecile. I would rather do physical harm to the politicians than allow any sort of transaction tax on financial trades. It is the epitome of poorly thought out policy, and the Europeans may as well sink their economies yet again with more liquidity draining rules. This would be worse than the ban on shortselling, and if you want to know what will happen if there is an ftt see the Bovespa index down over 10% from when their ftt went into effect. I expect another 20-30% decline in that market within 6 months.
 
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