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

Maybe the best thing we (Americans) could hope for would be a Eurozone only FTT. Investment firms and traders across the European continent will flee to London, New York, Chicago, Toronto, Hong Kong, Singapore, etc. The US would definitely benefit as capital, trading volume and jobs relocate to non-FTT cities.

Quote from listedguru:

According to some articles I posted earlier Denmark is supposedly no longer opposed to a Euro ftt as they have recently elected a pro ftt goverment. Also another article I posted seems to indicate that Ireland would have a hard time voting against an Euro ftt. I really find it hard to believe regarding Ireland as they have said they would only go along if the UK does (which IMHO isn't going to happen).

I'm really not sure where the EU ftt tax currently stands. I guess there's an outside chance it could happen in the Eurozone but even thats still unlikely (IMHO). If it did happen in the Eurozone the results would be less than stellar and would I'm sure that would definately scare the rest of the region (and world) against signing up for it.


All IMHO,

--Guru
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He's always saying that the UK has a stamp tax, but never mentions that nearly 80% of all transactions are exempt. I know he's aware of it because I've sent him several very polite emails correcting him on his many omissions and misstatements of the facts.

Quote from sheda:

Owen Tudor is literaly a fucking idiot that does not understand tax incident and becomes confused with simple economics...

"And Osborne is outnumbered"
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Quote from listedguru:

Just posting this for some color on the Denmark situation:

Osborne increasingly isolated on Financial Transactions Tax:

http://www.leftfootforward.org/2011/09/george-osborne-isolated-financial-transactions-tax/

"Osborne’s approach was widely seen as a bargaining position, designed to ensure whatever deal is done is not too damaging to the London financial interests he is so keen to represent."

"And Osborne is outnumbered. Last week, Denmark elected a new government with a manifesto commitment to support FTTs unilaterally (so they will certainly drop the previous Danish government’s opposition to a European measure) – leaving the Czechs and Swedes as his only major allies."

"The Danes have joined the French and Germans who have submitted their own detailed proposal to the Commission, along with the Austrians, Belgians, Greeks and Spaniards who have supported the measure for some time. The Netherlands government is keen to insist on the UK signing up rather than adopting the fall-back of a eurozone tax, so the British government will come under substantial lobbying over the next few weeks. Hence Osborne’s robust initial position."

-Guru
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Every single one of these countries will go bankrupt if they do this.

<b>It's not a lie or speculation, <i>that is absolutely what will happen to any idiotic politician that chooses to remove liquidity from his capital markets. They'll get sucked down the drain only to be left with bailout options once again. Anyone who supports FTT isn't a rational human being, or sensible. </i> There is a point where economic rationality and morality should meet, but morality does not call for an outrageously expensive, costly, and growth stopping tax. These countries will fail if there really are politicians pulling for this. </b>

The Bovespa is now down 20% due to this tax. Going on 40% most likely, but there is a point where it cannot go any lower and this is the rationality that these politicians supposes still exists but the efficiency in the tax is such an enormous loss that to even begin to cover it would require discussions of deadweight losses. Most countries want to help their financial industries. In no uncertain terms would FTT be substantially and unquestionably the stupidest thing you can possibly implement inside your financial systems.

Finance requires liquidity. Liquidity is provided by the second. If you take out the liquidity the reason these politicians think it would be beneficial are based on two falacies:

<b>1: Limiting high frequency trading reduces volatility.</b>

False, and nobody speaking about this tax has any economic credibility at all.

<b>2: Because of the lack of liquidity the capital markets should, because there's supposed to be less volatility, then the markets should not move as much and trade at levels consistent with quarterly reports. The introduction of liquidity taxes is highly detrimental to the financial system, and anybody that suggests this tax is completely mad, dilluded, insane, stupid, naieve, retard, doesn't know anything about economics or how the world really works.</b>

It reminds me of Bernanke's appointment Janet Yellen who said, "If it were possible to take interest rates into negative territory, then I would be voting for that."

I do not believe this tax will pass ultimately but just the fact that it's even being suggested is so ridiculously stupid it confounds everything about my education in Financial Economics.

You can't go around saying you paid $2 now give me what? A penny? Two cents? Zero point zero zero zero 1 cent?

No matter how stupidly they claim that the tax will be insignificant is so arbitrary that only the best researchers will be able to tell you just how bad that tax really was in dollar terms. Do a structural test after every market's had the tax, but you don't really need to do this because it is so pathetically obvious that any politician that supports that, or individual for that matter <b>has ABSOLUTELY NO CLUE WHAT THEY ARE TALKING ABOUT.
 
The European Union plans to press the case for a tax on trading shares and bonds, foreign exchange and derivatives at a summit of the Group of 20 industrial and developing nations in November. France and Germany, the euro zone's two most exposed countries to the debt of PIGS, have already put the full weight of there economic illiteracy, the exact force that bought the Euro crisis about behind the idea, although there is no official agreement yet on how to spend the revenue generated, these dreamers actually believe it will fund the exit to there economic woes and they intend to do just that whilst laughing at the useful idiots who backed this idea believing it to be for the "greater good" and "global warming"
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No one in the media has asked Germany why they abolished their failed financial transaction tax in 1991.


Sounds familiar.
Germany: Forcing failure globally, one country, one zone at a time.
 
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