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

Quote from ExchangeBonds:

I'm not saying it has a good chance of being passed. What I'm saying is that if it gained traction over here, don't believe for one second the big banks are on our side. They won't fight for it to not happen but to fight for an exemption.
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I hear ya. I am sure they would look out for themselves. But I highly doubt that they would want it to pass even with an exemption for them. Even if they got an exemption, volumes would plummet causing their revenues from trading/market making to fall tremendously.
 
With FFT in place it is easier to manipulate price levels with lower volumes ant the market collapse will not materialize. On top of that exempt banks will be well funded by regulators/fed to keep market steady.

With FFT there are 2 questions - when it will be implemented and what is plan B for retail investor.
 
Quote from traderchi128:

The last thing this tax would do would enhance mkt stability. Volumes would plummet and liquidity would disappear. Spreads would widen out to ridiculous levels causing huge volatility at times. Good luck to the Mutual Fund manager who has to sell hundreds of thousands of shares. Their trades alone would cause stocks that normally aren't that volatile to plummet. Every time these guys went to sell individual stock circuit breakers would be hit.

The people/groups who are so in favor of this tax would take a financial beating as their IRA's and 401k's would get obliterated as the markets plummets.

Last but not least....the tax revenue expected to be generated by this tax would probably be around 10-20% of what they thought. The geniuses that came up with this tax based revenues on what volumes are today. If this tax gets passed volumes will fall by 80% or so.

This tax has no chance of ever being implemented.
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I am waiting for zdreg to show up here and tell you how pollanyish your statements are (LOL). I agree with you that this tax isn't going to happen here in the US. The Dem's couldn't even get it moving when they had their super majority and the world was coming to an end thanks to big finance.

We all need to keep in mind that there are several Dem's in the Senate who are against the ftt. Also I don't think Obama's right hand man in Chitown (Rahm Emanuel) would allow this tax to decimate his city...

I'm just sayin':)

-Guru
 
When Wall Street financiers write letter to British PM to agree on that tax and they are the ones telling US Congress how to vote then I do not see this tax not being introduced here.
 
Quote from listedguru:

I am waiting for zdreg to show up here and tell you how pollanyish your statements are (LOL). I agree with you that this tax isn't going to happen here in the US. The Dem's couldn't even get it moving when they had their super majority and the world was coming to an end thanks to big finance.

We all need to keep in mind that there are several Dem's in the Senate who are against the ftt. Also I don't think Obama's right hand man in Chitown (Rahm Emanuel) would allow this tax to decimate his city...

I'm just sayin':)

-Guru
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Great point about Emanuel. At the end of the day Obama,most of the Dems, all of the Republicans are against it. Even over in Germany they are backing away.The French might pass it...then watch volumes plummet 80% or so and have every trader/fund leave France. They will take a huge hit, then within months repeal the tax saying it was a mistake.

The problem is the people who are so in favor of it have zero clue on how markets/traders/volume works.
 
CNBC.com Article: Angela Merkel’s Dilemma: Is the Euro Worth It?

As Angela Merkel packs her bags for yet another European summit, the question which has been plaguing her for the past year remains: how far will Germany go to prop up the euro zone?

Full Story:
http://www.cnbc.com/id/47944133

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This article says the position paper for a banking union for this week's important summit calls on a FTT - specifically on banks - to help finance the costs of a banking union. It implies no exemptions for banks in a common FTT, although maybe they want traders to fund it?

Germany won't budge and this banking union may take too long. Germany wants surrender of sovereignty and I doubt France will surrender this time.
 
CNBC.com Article: Pre-Summit Document Presses EU Banking Union

European leaders will discuss specific steps towards a cross-border banking union, closer fiscal integration and the possibility of a debt redemption fund at a summit on June 28-29, according to a document prepared for the meeting.

Full Story:
http://www.cnbc.com/id/47943162

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It says financed via levies on the banking sector such as FTT.
 
Quote from Robert A. Green:

CNBC.com Article: Angela Merkel’s Dilemma: Is the Euro Worth It?

As Angela Merkel packs her bags for yet another European summit, the question which has been plaguing her for the past year remains: how far will Germany go to prop up the euro zone?

Full Story:
http://www.cnbc.com/id/47944133

-----------------------------------------------

This article says the position paper for a banking union for this week's important summit calls on a FTT - specifically on banks - to help finance the costs of a banking union. It implies no exemptions for banks in a common FTT, although maybe they want traders to fund it?

Germany won't budge and this banking union may take too long. Germany wants surrender of sovereignty and I doubt France will surrender this time.
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"I doubt France will surrender this time."
that is a great statement. you should have written this like THIS. it will end the same way as world war I and II with France's ignominious surrender.
vive le france.
 
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