Isn't the forex market bigger than the US stock market? If so it's interesting this says a tax of .005% would raise USD 30-40 billion a year yet others keep saying taxing stocks would raise over 100B or something crazy. Is my thinking here correct or is forex smaller? -Guru
Oh, Schmidt! Really? A rate too low to affect the markets? How would forex trading compare to bonds and money market trading? Canada 1996 Parliamentary Information and Research Service http://www.parl.gc.ca/information/library/PRBpubs/bp418-e.htm#C. "In Sweden, a three-basis-point tax on bonds caused trading to drop by 85%." Money market "Sweden experienced a 20% drop in trading with a tax of 0.2 basis points," "Sweden, on the other hand, appears to be a classic example of an experiment gone wrong, while Germany, like many other countries, has decided that the costs outweigh any benefits from this type of tax."
A 0.005% tax is 1/50th the 0.25% tax being pushed in DeFazio's idiotic bill. I'd rather there be no tax, but if a tax needs to be levied to get populists off our backs, I'd be much happier with Baker's 0.005% suggestion. DeFazio's 0.25%, on the other hand, would destroy my trading.
there shouldn't be a tax. once its in, the rate will only increase along with ancilalry fees. why should traders be taxed to pay AIG bonuses?
I heard a lot about "attachment to the liberty of transaction and investments","markets that have been a great mean to create wealth", "need for liquidity" lately from political leaders... They are also targetting more on "institutions that represent systemic risk" and less about little guy speculation. Perhaps I hear what I want to hear, but we would have heard about it around G20 for sure.
So this moron is calling for a 1% tax on all wall street transactions. This just keeps getting crazier. Are these people really that stupid? -Guru
Yes, they are. http://www.bloomberg.com/apps/news?pid=20601087&sid=acPp9IKTqph0&refer=home âThis is an opportunity to send a clear message that there is a new sheriff in town, that things have changed and that you can once again have faith in investing,â U.S. Senator Ted Kaufman, a Delaware Democrat, said in an interview yesterday. Investing is based on fundamentals. If fundamentals are so good then you've got yourself as an investor the opportunity of a lifetime to buy stocks at these depressed prices. So why the faith in investing is shattered? Because the prices of the stocks went down? But that's part of the investing. Please don't expect the stocks prices to rise when the economy deteriotes and companies slash their dividends.
That is the funniest thing I've read today. How can this moron find his way out of his house every day? It must take him hours to find the front door.
Not so funny question: For those traders who have been making six figures for the past few years (unfortunately I'm not one of those lucky ones), if the 1/4% transaction tax goes into effect and your trading goes into the crapper, could you file for unemployment? Just wondering how that would work. +-*/ Math_Wiz