Does anybody here know anyone on the NYSE board? Or know someone who knows anyone on the NYSE board? I'd be curious to know whether this issue has caused misgivings. It sure as hell ought to...
most of the merkel/sarkozy political moves, as of late, have to do with their internal election aspirations. the "occupy whatever" movements have had a huge political impact in EU and the main countries have been very active outlining a socially conscious agenda in order to gain approval from the masses, especially now that we are approaching election cycle in both of these countries. most of the rhetoric concerning the ambitions of a wide spread FTT is targeted to win the support from the majority of citizens that consider the banking industry responsible for the economic crisis of last years. this is just political marketing, their goal is not to pass a law but to win the elections. in france, they call it the "coup de bluff".
The Deutsche Bourse NYSE deal will fall through, and the NYSE would never allow FTT, anyway, so there's no upside for the shareholders in that deal.
Someone correct me if i am wrong but dont all NYSE listed companies (like GE etc) have the freedom to move to NASDAQ anytime they want too?
Other taxes will increase to pay for the cost of collecting the transaction tax: "Swedish Finance Minister Anders Borg pointed out that a financial transactions tax in his country saw implementation costs out-run revenues." http://msn.finance.com.my/index.php/rss/5504278 ------------------ Other taxes will increase to compensate for revenue losses the transaction tax creates. Other taxes will increase to compensate the unemployed. From the UK Parliament's European Scrutiny Committee regarding the minimum tax rate of the FTT. They are using data from the European Commission that wants the tax so badly as their own source of revenue: "...taking these figures in turn and before taking into account relocation effects, in real economic impacts it can be estimated that a reduction of 1.76% of EU GDP equates to a fall in economic output of â¬216 (£186) billion, a fall in employment of 0.2% equates to a loss of 478,000 jobs, a 3.43 % fall in EU GDP equates to a fall in economic output worth â¬421 (£362) billion and a 0.34% fall in employment equates to a loss of 812,000 jobs." http://www.publications.parliament.uk/pa/cm201012/cmselect/cmeuleg/428-xxxix/42806.htm
Negligible? The effect is to remove liquidity signifcantly, and never see any moves up ever again. Markets don't move if nobody's trading, and that's what you have. Negligible in the sense of transactions cost; a real headwind for anyone in the market. You're so naieve.
Annual cost of EU FTT: money market 7.82 percent, equity 2.57 percent. "Moreover, Joanna Cound, managing director, government affairs and public policy at BlackRock, argues these costs are âthe tip of the icebergâ http://www.ft.com/intl/cms/s/0/54e1aab8-25a9-11e1-856e-00144feabdc0.html#axzz1jLVRc4gG
a transaction tax is basically a doubling or tripling of commission. for most, and a milleniumnning of HFT commissions. If you go back to 1980 you had the same situation, and the market did just fine. fear is overrated. sure in 1980 you didnt had daytraders, they will die.