Kiss Your Job GoodBye

[wjk]

Quote from cstfx:

you know if they attempt to push this thru, then we should push our congressmen to institute and idiot McD tax for all the morons who think they are getting their daily protein, starch, and fat quotient by eating Big Macs every day. After all, it is these fat assess causing a significant stress on the health care system in this country.

Already conceived.

http://wcbstv.com/local/fast.food.tax.2.712510.html

Not to mention the folks that are up in arms about the carbon footprint of food production.

http://www.breitbart.com/article.php?id=CNG.e36a67d49c1127a8c17cc38ed4a4c27e.211&show_article=1

These types of taxes have been considered, and I believe they will become popular in congress if we get universal HC at some point. Conyers HC bill has a stock transaction tax to fund his bill, as well, but no food tax...yet.

Back to the thread:

Wall street will be punished...one way or another. It's what the "people" want, and the media supports. Congress will do everything in it's power to keep the spotlight of blame from shining on them. Evil speculators are to some in congress as the US is to some foreign dictators. A rallying cry used on the populace to retain their power.

 

[jem]

I am not sure if anyone has stated this - but that tax would change the market structure. It will clear out a lot of arbs and short term traders. There is a chance it might make trading easier.

I loved 1/8 spreads on the NYSE. You had to know what you were doing... but if you did you could make money almost every day.

many people trading now would have no idea how to trade an 1/8 spread and they would be begging for tighter spreads.

So this crazy tax might open up opportunities.

By the way - I think it is bad policy and bad for the country.

 

[wjk]

Quote from cstfx:

Write your Congressmen/women and Senators, especially if you live in the NY or Chicago Area. (Even if you don't live here, write them anyway as if you did.) Schumer understands the importance of a healthy Wall Street as does Lautenberg and the other guy (???). I can't speak for Chicago, but I imagine that they are just as familiar with the potential effect of this.

Like OT says, be vigilant.

Excellent idea. I only hope that the congressmen and senators are those which actually read the bills they sign. Perhaps that is where we come in. Let's make sure they read any legislation that may have punitive taxes or other restrictive legislation in them. At least the ones that would be against such proposals.

 

[rsikit]

If my math is correct even with 1/8 spreads say u traded a 100 shares of a 100 dollar stock you would need to make atleast 1/2 a point on every trade just to break even on the trade not including commissions and fees just the tax. So every trade you did you would need to make 1/2 point there to break even. Even with wide spreads, which I agree were great back in the day it would still be tough and most people arent capitialized for it god forbid u break even u still lose 500 bucks if you just buuy or sell something at 100,000$ in value.

 

[gkishot]

Quote from bwolinsky:

I would still be, but over time, substantial decreases in projected APR's would occur.

Do you realize that your annual transaction tax equals to your trading capital so you need to at least double your money to break even? And that's even before capital taxes are applied. If you can more than double your money every year then I take off my hat to you. I am sure not many hedge funds let alone individual traders are capable of doing this.

Unless I miss something.

 

[tmarket]

Have any of you read the bill? Why is the FIA opposing the ban of naked CDS? It is the primary basis for the financial collapse. Terminating CDS will not send it overseas. This is a global financial crisis, other nations will follow suit and terminate CDS everywhere. A naked CDS is equivalent to buying a life insurance policy on somebody you don't know and don't have a direct financial bond. If you could buy unlimited (read leveraged) life insurance and profit from the death of people you don't know, there will be a lot of dead bodies around.

This bill will limit the damage caused by The "Commodity Futures Modernization Act of 2000" (H.R. 5660) .
http://www.elitetrader.com/vb/showthread.php?threadid=142732

The Obama administration is just trying to undo the wreckage caused by the wanton deregulation of the 90s and 2000, some of those faces shown below.

Section 16 -- Limitation on Eligibility to Purchase a Credit Default Swap
FIA opposes the ban on naked credit default swaps. Section 16 will effectively terminate the U.S. CDS market and send it overseas. CDS transactions have fostered many
5
6
economic benefits and it would be better to improve regulation and oversight of this market rather than jettisoning it to foreign shores.
FIA does support the provision that defines a credit default swap and allows registered entities that list for trading or clear CDS instruments to operate without having to comply with regulatory conditions imposed by the SEC. (38:1-9)

 

[Arnie]

Quote from moneymonger:

I was once lambasted among liberal friends for suggesting that Obama was not as smart as he sounds. I now know that he is
as dangerous as he is precieved smart. How on earth could he effectively drive a stake through the heart of the CME? Chicago
is his hometown. Chicago without a thriving CME will eventually go the way of Detroit. As Chicago goes, so goes Obama. The market distortions, shortages ,and yes even price spikes in key commodities that this change will ensue will cause the unraveling
of his Presidency. Not very smart.

What makes you think the average American voter would blame him?

 

[Landis82]

Quote from tmarket:

Have any of you read the bill? Why is the FIA opposing the ban of naked CDS? It is the primary basis for the financial collapse. Terminating CDS will not send it overseas. This is a global financial crisis, other nations will follow suit and terminate CDS everywhere. A naked CDS is equivalent to buying a life insurance policy on somebody you don't know and don't have a direct financial bond. If you could buy unlimited (read leveraged) life insurance and profit from the death of people you don't know, there will be a lot of dead bodies around.

This bill will limit the damage caused by The "Commodity Futures Modernization Act of 2000" (H.R. 5660) .
http://www.elitetrader.com/vb/showthread.php?threadid=142732

Agreed.

There is so much "Gloom and Doom" and ignorant misinformation being spread on this thread, that one really wonders if any of these posters actually make money trading the markets.

 

[Landis82]

Quote from listedguru:

I'm under the impression that Barney Frank was referring to the tax spelled out in the tanner proposal (a tax on the profits of financial services firms (basically TARP money receipients). I'm pretty sure he was referring to that tax (not the trans tax).

Frank recently authored a bill (HR 384 - the TARP Reform and Accountability Act) and that bill had the Defazio Transaction Tax amendment attached to it. That amendment never made the final bill which passed the house (and I think is still sitting in the Senate). Wouldn't it make sense that the trans tax amendment would have made the final version of this bill if Frank was a supporter?

This is a good read if folks haven't read it yet. There are some good updates in it...

http://www.greencompany.com/EducationCenter/Greenblog011409.pdf


-Guru

Excellent point Guru.

But there is far too much "fear-mongering" going on in this thread for anyone to actually take a deep breath and turn on their brains for a change.
Quite typical of those who post here on ET, I might add.

 

[truehawk]

Quote from tmarket:

Have any of you read the bill? Why is the FIA opposing the ban of naked CDS? It is the primary basis for the financial collapse. Terminating CDS will not send it overseas. This is a global financial crisis, other nations will follow suit and terminate CDS everywhere. A naked CDS is equivalent to buying a life insurance policy on somebody you don't know and don't have a direct financial bond. If you could buy unlimited (read leveraged) life insurance and profit from the death of people you don't know, there will be a lot of dead bodies around.

This bill will limit the damage caused by The "Commodity Futures Modernization Act of 2000" (H.R. 5660) .
http://www.elitetrader.com/vb/showthread.php?threadid=142732

The Obama administration is just trying to undo the wreckage caused by the wanton deregulation of the 90s and 2000, some of those faces shown below.

Agree, they have NOT read the bill.


This bill is aimed at ICE and the possible ping-pong trading between MS and GS that "may have" driven up the price of oil. It is NOT aimed at the small trader. It is to rein in the Market Makers.
The Madoff exemption will which allowed MM to roll over fails to deliver will be gone and there will be a serious attempt to level the playing field.

Remember the SOES rules?