Quote from Anaconda:
This has been discussed to death and so few of you actually understand what is going on.
It's very simple. The major Wall Street banks will get exemptions and the rest of the traders, particularly the small retail daytraders will go bye bye from the industry. That should create more applicants for the Armed Forces and Obama's "volunteer" programs, while Goldman and the gang get to enjoy fat ass margins on market making and prop trading. Institutions will still move stock around and pass the costs down to the investors.
Creating arguments how this will destroy jobs is like beating on a dead horse. The lackeys pushing this through publicly may not know what is going on, but those financing these lackeys know exactly what they are doing.
Get it through your head. This transaction tax is not an idiotic idea. It's great for a small minority and very bad for a large majority.
Oh and finally. The politicians do not care what you think, at least most of them. You are not the ones financing their campaigns or promising them favors after their terms. They really do not care. You can always check back to the overwhelming public resistance to the bailout bill and how that worked out.
how would they justify an exemption for those few big players? those who caused the big mess should then be the only ones NOT to pay that tax? and every single small trader/investor who saves and invests money for retirement will pay?
that tax would put most brokerages out of business - at least all those who serve daytraders. it would hurt software- and data vendors, etc. and most of all - it would more or less KILL derivative exchanges and extremely hurt stock exchanges.
if those few big players would be the only ones NOT to pay the tax - who in the world should take the other side of their daily trading activity??? small investors who make a buy or sell every few weeks? does anyone really believe that?
how should such a tax raise a lot of money - if liquidity will simply be gone? it simply cannot work. at least not with something like 0,25% per side for every buy and sell. maybe 0,05 or 0,01 or whatever - if at all. question remains how much money it would actually raise.