A decade until you can draw your returns from your brokers account to give time for the authoritys to make sure your investment never had a negative impact on the economy :lol:
I will not accept arguments, in the present case, based on prediction of future politics, nor ad hominem arguments, of course. I am an advocate of the tax implemented in the way Tobin intended it. As a means of raising money, it is a terrible idea. As a means of cleaning up the market, it's brilliant. It must be set very low and at just the precise level to do great good and virtually no harm. I will change my mind instantly if anyone can present a logical counter argument without rejecting the assumption that HFT poses a greater risk to the market than benefit. _______________________ "Common wisdom is usually wrong." -- Gore Vidal
"virtually no harm" there is no number low enough unless you go out 10 decimal places you can kiss ET goodby as there will be no retail traders left or do you need to see the numbers for the umpteenth time. it is obvious that nothing stops you from suggesting confiscatory taxes for traders. the tobin tax does not work in the UK except to enrich the market makers who are exempted. there are no retails traders who tradel on the LSE. the spread bet which is exempt from taxes are used by the retail people. they get clipped on every trade because they must pay the spread on every trade and are limited to the liquid stocks. piezoe, if you don't know what you are talking just keep quiet. if you post just mention your communist biases instead of hiding them and misleading the less knowledgeable.
Man, can you do any math??? This will destroy retail traders and even active swing traders. You want to carpet bomb the whole village to get rid of one house, think about it! Even Tobin recanted his original idea as being stupid and harmful!!
No one else is, those pushing for the tax are doing so as a means of rasing money, even when they had the insane 0.1% rate in mind Algirdas Semeta said when the tax is introduced then they can raise the rates. No politican can ever be trusted to keep the rates microscopic but even Tobin changed his mind....politics must be able to come up with a solution to something that is not A blow it up B tax it to death.
"Even Tobin recanted his original idea as being stupid and harmful!! " nice. please provide a link. people usually go to their grave spouting what made them famous, even if they know they are dead wrong.
piezoe Registered: Jan 2006 Posts: 5033 I will not accept arguments, in the present case, based on prediction of future politics, nor ad hominem arguments, of course. I am an advocate of the tax implemented in the way Tobin intended it. As a means of raising money, it is a terrible idea. As a means of cleaning up the market, it's brilliant. It must be set very low and at just the precise level to do great good and virtually no harm. I will change my mind instantly if anyone can present a logical counter argument without rejecting the assumption that HFT poses a greater risk to the market than benefit. _______________________ "Common wisdom is usually wrong." -- Gore Vidal just do the math on a .01 tax (as has been pointed out a million times on this thread) let alone a .03 which that idiot Defazio has inroduced....HFT is a far less of a worry than the transaction tax.. Those idiots will never introduce it at a low enough number where it would work like you think it would. As others have correctly noted here,all of us are done if it is introduced here. Wake up, man.
"Although Tobin had said his own tax idea was unfeasible in practice, Joseph Stiglitz, former Senior Vice President and Chief Economist of the World Bank, said, on October 5, 2009, that modern technology meant that was no longer the case. Stiglitz said, the tax is "much more feasible today" than a few decades ago, when Tobin recanted. However, on November 7, 2009, at the G20 finance ministers summit in Scotland, Dominique Strauss-Khan, head of the International Monetary Fund, said "transactions are very difficult to measure and so it's very easy to avoid a transaction tax."" Also remember reading (cannot find it), that later (after 1971 when he introduced it) he called his tax idea the ugly monster that would rear its head every now and then, then go back under water where it belongs.
Bail-in is the new model going forward. Regulators in EU, US, UK, Canada will let commercial banks fail going forward, and allow those banks to writeoff unsecured creditors (bond holders and depositors) to maintain capital requirements. Problem solved. The whole transaction tax was proposed as an answer to Government backstop of commercial banks. No more Government backstop = no more need for transaction tax. New set of problems to worry about, tho. my 2 cents