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

CME's Duffy: Tax On Trading Would Raise Food Prices:

http://www.foxbusiness.com/industries/2011/10/12/cmes-duffy-tax-on-trading-would-raise-food-prices/

Levying a tax on derivatives trades would translate to higher food prices around the world, according to the executive chairman of futures exchange operator CME Group Inc. (CME).

"If you want to see the price of food rise, just throw on a transaction tax," he said, speaking at a Chicago event hosted by the Futures Industry Association.

Duffy said the relatively small number of trading firms that provide the lion's share of liquidity in global derivatives markets means that a transaction tax would put a "giant burden" on those participants that currently allow farmers and energy companies lay off risk in "a matter of seconds."

"That bid-offer spread will widen and it will cause the cost of business to go up all around the world," said Duffy.
 
Quote from Stok:

Wow...surprised they are soooo dumb!!! In fact, that would be just fine...we can witness in real time what happens with the FTT, just in case of the peeps that forget (Sweden) history.
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Don't forget that Sweden fiddled around with their FTT for SIX YEARS until it was abolished. That's a long time to recognize that something is not working and make a correction.

Oh and their first "fiddle" was to double the tax. :confused:

Someone should suggest to Germany that it's rumored you can turn lead into gold. I'm sure they will ignore history and try it.
 
Quote from listedguru:

Levying a tax on derivatives trades would translate to higher food prices around the world, according to the executive chairman of futures exchange operator CME Group Inc. (CME).
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If a $.25 fee on a contract with a notional value of, what, $60K is going to cause such dire consequences, maybe Mr. Duffy should lower his exchange's fees. Think how many hungry children in Africa could be fed.
 
Quote from loufah:

If a $.25 fee on a contract with a notional value of, what, $60K is going to cause such dire consequences, maybe Mr. Duffy should lower his exchange's fees. Think how many hungry children in Africa could be fed.
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Dude, he's talking about the FTT...not the occupy chicago idiots proposal. The way it is proposed is $200 per RT of $50,000. Which that would destroy liquidity up to 80% easy.

And since when do the traders need to feed the children in africa? We pour billions already there from all sorts of aid and private aid...this is a political witch hunt by the uber liberal socialists.
 
Germany is prepared to introduce a tax on financial market transactions on its own if it is unable to bring its European partners on board, Finance Minister Wolfgang Schaeuble said on Wednesday.
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Does not surprise me one bit because:

says Mr Schäuble, they bear the blame too. He disdains the culture of making money from money. The vast majority of financial transactions, he told fellow finance ministers in a closed meeting earlier this month, “do not serve the real economy
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Its about a personal point of view.
 
Quote from sheda:

Does not surprise me one bit because:



Its about a personal point of view.
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Exactly. This is a political move. With dire consequences.
 
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