Already conceived. http://wcbstv.com/local/fast.food.tax.2.712510.html Not to mention the folks that are up in arms about the carbon footprint of food production. http://www.breitbart.com/article.php?id=CNG.e36a67d49c1127a8c17cc38ed4a4c27e.211&show_article=1 These types of taxes have been considered, and I believe they will become popular in congress if we get universal HC at some point. Conyers HC bill has a stock transaction tax to fund his bill, as well, but no food tax...yet. Back to the thread: Wall street will be punished...one way or another. It's what the "people" want, and the media supports. Congress will do everything in it's power to keep the spotlight of blame from shining on them. Evil speculators are to some in congress as the US is to some foreign dictators. A rallying cry used on the populace to retain their power.
I am not sure if anyone has stated this - but that tax would change the market structure. It will clear out a lot of arbs and short term traders. There is a chance it might make trading easier. I loved 1/8 spreads on the NYSE. You had to know what you were doing... but if you did you could make money almost every day. many people trading now would have no idea how to trade an 1/8 spread and they would be begging for tighter spreads. So this crazy tax might open up opportunities. By the way - I think it is bad policy and bad for the country.
Excellent idea. I only hope that the congressmen and senators are those which actually read the bills they sign. Perhaps that is where we come in. Let's make sure they read any legislation that may have punitive taxes or other restrictive legislation in them. At least the ones that would be against such proposals.
If my math is correct even with 1/8 spreads say u traded a 100 shares of a 100 dollar stock you would need to make atleast 1/2 a point on every trade just to break even on the trade not including commissions and fees just the tax. So every trade you did you would need to make 1/2 point there to break even. Even with wide spreads, which I agree were great back in the day it would still be tough and most people arent capitialized for it god forbid u break even u still lose 500 bucks if you just buuy or sell something at 100,000$ in value.
Do you realize that your annual transaction tax equals to your trading capital so you need to at least double your money to break even? And that's even before capital taxes are applied. If you can more than double your money every year then I take off my hat to you. I am sure not many hedge funds let alone individual traders are capable of doing this. Unless I miss something.
Have any of you read the bill? Why is the FIA opposing the ban of naked CDS? It is the primary basis for the financial collapse. Terminating CDS will not send it overseas. This is a global financial crisis, other nations will follow suit and terminate CDS everywhere. A naked CDS is equivalent to buying a life insurance policy on somebody you don't know and don't have a direct financial bond. If you could buy unlimited (read leveraged) life insurance and profit from the death of people you don't know, there will be a lot of dead bodies around. This bill will limit the damage caused by The "Commodity Futures Modernization Act of 2000" (H.R. 5660) . http://www.elitetrader.com/vb/showthread.php?threadid=142732 The Obama administration is just trying to undo the wreckage caused by the wanton deregulation of the 90s and 2000, some of those faces shown below.
Agreed. There is so much "Gloom and Doom" and ignorant misinformation being spread on this thread, that one really wonders if any of these posters actually make money trading the markets.
Excellent point Guru. But there is far too much "fear-mongering" going on in this thread for anyone to actually take a deep breath and turn on their brains for a change. Quite typical of those who post here on ET, I might add.
Agree, they have NOT read the bill. This bill is aimed at ICE and the possible ping-pong trading between MS and GS that "may have" driven up the price of oil. It is NOT aimed at the small trader. It is to rein in the Market Makers. The Madoff exemption will which allowed MM to roll over fails to deliver will be gone and there will be a serious attempt to level the playing field. Remember the SOES rules?