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It's official: Merkel seeks German F.T.T. at NYSE
- Thread starter tortoise
- Start date
most of the merkel/sarkozy political moves, as of late, have to do with their internal election aspirations. the "occupy whatever" movements have had a huge political impact in EU and the main countries have been very active outlining a socially conscious agenda in order to gain approval from the masses, especially now that we are approaching election cycle in both of these countries.
most of the rhetoric concerning the ambitions of a wide spread FTT is targeted to win the support from the majority of citizens that consider the banking industry responsible for the economic crisis of last years.
this is just political marketing, their goal is not to pass a law but to win the elections.
in france, they call it the "coup de bluff".
most of the rhetoric concerning the ambitions of a wide spread FTT is targeted to win the support from the majority of citizens that consider the banking industry responsible for the economic crisis of last years.
this is just political marketing, their goal is not to pass a law but to win the elections.
in france, they call it the "coup de bluff".
This is simply not going to happen.
Quote from tortoise:
The idea is to force the FTT onto UK and US through regulatory subterfuge. The ongoing UK/EU fandango is well-documented. The NYSE situation is far sneakier. Basically, NYSE/Deustche Boerse would be required to levy a transaction fee equivalent to the German FTT levied on each transaction. The proceeds would go to Berlin. Absolutely no US regulatory involvement.
Clever.
Quote from Random.Capital:
If the point of the tax is to fund future inevitable bailouts, it's fine. Somebody has to pay for it...
Other taxes will increase to pay for the cost of collecting the transaction tax:
"Swedish Finance Minister Anders Borg pointed out that a financial transactions tax in his country saw implementation costs out-run revenues."
http://msn.finance.com.my/index.php/rss/5504278
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Other taxes will increase to compensate for revenue losses the transaction tax creates. Other taxes will increase to compensate the unemployed.
From the UK Parliament's European Scrutiny Committee regarding the minimum tax rate of the FTT. They are using data from the European Commission that wants the tax so badly as their own source of revenue:
"...taking these figures in turn and before taking into account relocation effects, in real economic impacts it can be estimated that a reduction of 1.76% of EU GDP equates to a fall in economic output of â¬216 (£186) billion, a fall in employment of 0.2% equates to a loss of 478,000 jobs, a 3.43 % fall in EU GDP equates to a fall in economic output worth â¬421 (£362) billion and a 0.34% fall in employment equates to a loss of 812,000 jobs."
http://www.publications.parliament.uk/pa/cm201012/cmselect/cmeuleg/428-xxxix/42806.htm
A transaction tax isn't that bad for real investors. In fact, the effect might be negliable.
Quote from failed_trad3r:
A transaction tax isn't that bad for real investors. In fact, the effect might be negliable.
Negligible? The effect is to remove liquidity signifcantly, and never see any moves up ever again. Markets don't move if nobody's trading, and that's what you have. Negligible in the sense of transactions cost; a real headwind for anyone in the market.
You're so naieve.
Quote from failed_trad3r:
A transaction tax isn't that bad for real investors. In fact, the effect might be negliable.
Annual cost of EU FTT: money market 7.82 percent, equity 2.57 percent. "Moreover, Joanna Cound, managing director, government affairs and public policy at BlackRock, argues these costs are âthe tip of the icebergâ
http://www.ft.com/intl/cms/s/0/54e1aab8-25a9-11e1-856e-00144feabdc0.html#axzz1jLVRc4gG
Quote from bwolinsky:
Negligible? The effect is to remove liquidity signifcantly, and never see any moves up ever again. Markets don't move if nobody's trading, and that's what you have. Negligible in the sense of transactions cost; a real headwind for anyone in the market.
You're so naieve.
a transaction tax is basically a doubling or tripling of commission. for most, and a milleniumnning of HFT commissions. If you go back to 1980 you had the same situation, and the market did just fine. fear is overrated. sure in 1980 you didnt had daytraders, they will die.