President Obama was speaking about the American Recovery and Reinvestment Act when he said we must stop speculators from ruining the economy ever again. I haven't yet been able to find how the American Recovery and Reinvestment Act addresses specualators. I skimmed over it pretty quick, so whatever in there pertains to speculators must be small. If anybody has the specific text, please post it here. Thanks.
The only speculators that need to be regulated are the speculators with exotic instruments like credit default swaps. The stock market is enough regulated.
Completely agree with you on this. Anyone who says there is no way this will ever happen is not familiar with some of the retards that have recently been voted into office (or not so recently - pelosi). Anyways, IRS revenue is approx 2.5 TRILLION in a good year. This year, revenues are down 90%, which is particularly bad in the context of all this "stimulation". Politicians, particularly democrats, will most likely find clever ways to tax the shit out of whoever is still working or semi-productive.
What it is is the tone of the argument that is emanating out of Washington. Obama says it's the speculators; he is not addressing this toward those in the know but for the idiot sheep that need to be led; DeFazio introducing the trading tax to begin with was a direct shot across the Wall Street way of business; Queen Pelosi and her jester Reed have also been on record of supporting a tax to curb excessive spefculation in the market; and just this past week, Frank says that even tho it is mandated that this tax be proposed in FOUR YEARS if TARP faces a short fall, we might as well start rolling it out now because it is inevitable. (look at the video from the transaction tax thread). When the Pres talks about curbing speculation during his Sat "radio" address, he is talking to the everyman who does not know the difference between those mentioned in the above referenced Act and the everyday trader who trades 100-500 shares a pop: all they know is Wall Street is evil. Hollywood has now found it's new villain to play to the masses. This is not some conspiracy theory made by traders: this is the tone coming out of Wash to blame a particular segment of the population for all our society's woes. Last time a read about a segment of the population being blamed for all of society's ills was in 1920's-30's Germany.
Is it even possible with 0.25% transaction tax that there would be some day traders left who are still profitable? I simply don't see how.
Well I do not think they will get it passed just yet, they need to look into it as John Mack said, but anyways they only mentioned stocks and bonds lets see if futures are thrown in with it. For now I am trading FX until all this crap calms , down. Now I am glad they dont have a central exchange!
Well, Lucrum. When you spew something as stupid as what you wrote about people voting for Obama not being traders when it has nothing to do with it at all, what kind of response do you think you will get? Sorry for the moron comment but when people generalize like this it gets me really angry. People/traders have different political inclinations and there's nothing wrong about that. Fight the tax not the unavoidable outcome of failed government policy of the last decade.
I'm under the impression that Barney Frank was referring to the tax spelled out in the tanner proposal (a tax on the profits of financial services firms (basically TARP money receipients). I'm pretty sure he was referring to that tax (not the trans tax). Frank recently authored a bill (HR 384 - the TARP Reform and Accountability Act) and that bill had the Defazio Transaction Tax amendment attached to it. That amendment never made the final bill which passed the house (and I think is still sitting in the Senate). Wouldn't it make sense that the trans tax amendment would have made the final version of this bill if Frank was a supporter? This is a good read if folks haven't read it yet. There are some good updates in it... http://www.greencompany.com/EducationCenter/Greenblog011409.pdf -Guru
I was once lambasted among liberal friends for suggesting that Obama was not as smart as he sounds. I now know that he is as dangerous as he is precieved smart. How on earth could he effectively drive a stake through the heart of the CME? Chicago is his hometown. Chicago without a thriving CME will eventually go the way of Detroit. As Chicago goes, so goes Obama. The market distortions, shortages ,and yes even price spikes in key commodities that this change will ensue will cause the unraveling of his Presidency. Not very smart.