Would Bernie Sanders Kill Trading As We Know It?

[gkishot]

There was a line of discussion as to what level of FTT Sanders had proposed. The amount matters, even though as I said I think it's a bad idea overall. You threw out a number saying that Sanders was ""rumored to be" pushing it, providing a Daily Caller article as backing that said no such thing. When you're having a discussion about numbers and you say "He is rumored to be pushing for 0.1% tax on all financial transactions" when there's no basis to support that he is pushing that number, then yes, you're fabricating reality. If you had said something like "based on what other FTT supporters have pushed for in the past I'd assume that Sanders may push for a .1% tax" then you wouldn't be fabricating reality. But that more accurate statement has much less impact for your point of view so you chose not to say that. Just asking for some intellectual honesty here, the things a bad idea without making stuff up to make it look worse.

Here is what he is pushing for:
https://en.wikipedia.org/wiki/Financial_transaction_tax#United_States

 

[gkishot]

I think you are wrong.
If you trade 1 contract ES, the value of that contract is today about 1850*50=$92,500.
0.005% on $92,500 equals $4.625, or $9.25 per RT. If you use the minimum daytrade margin of $500, the cost represents 1.85%. I have no idea were you get your 25%?

1.85% * 250 trading days = 462% annually. This is way more than $500 of capital.

 

[Frederick Foresight]

Here is what he is pushing for:
https://en.wikipedia.org/wiki/Financial_transaction_tax#United_States

Please show where Sanders expressly and presently proposes those numbers. Serious request. I'm principally interested in futures, and the only number that I saw associated with him, on his own web site, was 0.005%, if memory serves. Since then, I have not been able to find any specifics on his site.

 

[gkishot]

Please show where Sanders expressly and presently proposes those numbers. Serious request. I'm principally interested in futures, and the only number that I saw associated with him, on his own web site, was 0.005%, if memory serves. Since then, I have not been able to find any specifics on his site.

0.005% is just to test the waters. The wiki article is a good indication of the expected ballpark range of FFT. As far as I am concerned even 1c is too much.

 

[Frederick Foresight]

0.005% is just to test the waters. The wiki article has a good indication of the expected ballpark range of FFT. As far as I am concerned even 1c is too much.

I think you're reading too much into it. None of us here likes the idea of FTT, but let's try to keep it real. "Testing the waters?" Come on. Even Sanders wouldn't kill the cow that gives us milk. He may just squeeze it a little. And even that is unlikely, since Clinton will probably get the nomination. Even if Sanders won the Democratic nomination and the general election (two big ifs), the FTT is still not a lock.

As for your "even 1 cent is too much," seriously, please stop with the overkill.

 

[ajacobson]

I don't for a moment believe they are proposing it to generate revenue - I think the revenue argument is a smokescreen. I think the argument is an attempt to modify trading behavior.

 

[gkishot]

I think you're reading too much into it. None of us here likes the idea of FTT, but let's try to keep it real. "Testing the waters?" Come on. Even Sanders wouldn't kill the cow that gives us milk. He may just squeeze it a little. And even that is unlikely, since Clinton will probably get the nomination. Even if Sanders won the Democratic nomination and the general election (two big ifs), the FTT is still not a lock.

The ignorance and anti-capitalist nature of politicians like Sanders must be exposed anyway. If not Sanders then some one else might catch the virus of this dangerous idea.

 

[i am nobody]

1.85% * 250 trading days = 462% annually. This is way more than $500 of capital.

You only tell half of the story. If you trade, the purpose is to make money. You don't speak about the profits, only about the cost. If you can make 1 points ES every trading day, you will have 250 trading days*1point at $50 equals $12,500 profit. That is 2500% if I calculate like you do. So total result would then be: $12,500- $2,310 (462% on $500) or a net profit of $10,190.

Just 1 point a day. Schizo makes more than that.

 

[Pricechange]

Not really sure how Bernie's election would effect trading, but I think after New Hampshire, the markets are a bit rattled that he is running close as a democratic nominee. Might be better if Bloomberg stepped in quickly and took the uncertainty away on the Democratic side. Not sure if it is too late or not for Bloomberg to enter but he probably should. Trump would be ok as a nominee on the Republican side regarding trading (probably better than the other repubs). I think Bernie is the one rattling things though.

 

[Frederick Foresight]

The ignorance and anti-capitalist nature of politicians like Sanders must be exposed anyway. If not Sanders then some one else might catch the virus of this dangerous idea.

So you're exaggerating to make a point? Sounds like propaganda.

In fact, even though Sanders is a self-described "democratic socialist," he is not an anti-capitalist. He just seeks a balance you do not agree with. Although I dislike the FTT idea, I think his other platforms are thoughtful and have merit.