What are the chances we see the financial transaction tax now that bama gets four more years? Will that basically shut down the average prop trader?
impossible, obama is backed by wall street. any attempt to pull that off would face stiff opposition by the big banks while would shift most of the trading oversees, such as to uk, dubai or honk kong. charging FTT only to small traders, while leaving big fish exempt doesn't make any sense as it would kill the broker industry in the US and thousands of jobs.
Probable? No Impossible? Absolutely not. Obama in an ideologue who will enact things in the interest of "fairness" even if he knows they will hurt the economy. Look no further than the coal industry. Clearly 2009 was not a great time to set that industry up for failure because he had to know it would raise energy prices, yet he did it anyway. He also seems to think anything the Europeans advocate, is infallible.
Posted this on the main FTT thread "1/4 percent tax" As figured, it was a status quo election. The same players will negotiate the fiscal cliff in the lame-duck session and the next Congress - Obama, Biden, Boehner, Reid, McConnell, Cantor and Pelosi. None of them are for FTT, and it's not on the radar for any grand bargain. Obama wants his bank liability fee (tax) instead, although he hasn't pushed it lately. The GOP won't agree to FTT or FAT, although they may be shaky after the election. Now that the election is over, hopefully Obama can go back on the offensive with the EU and tell them fast and hard, don't start taxing U.S. banks, funds and traders to pay taxes to Brussels. That's Obama's tax base and he needs it. EU extra-territorial reach FTT (assuming it is) is financial protectionism and Obama should bring a case in the world trade court if necessary. Geithner is too busy with his transition. I hope Obama names his replacement soon and we can lobby that person. I hope China and other big players pressure the EU EC-10, too. Isn't North America and Asia in the same boat as the UK? The best news of the election is Obama will hopefully stop campaigning. So, hopefully he can stop bad mouthing banks and start protecting American interests, which include our markets, banks and funds. How else will we ever pay all those defined benefit retirement plans to public-sector workers?