This MC posting came out a month ago, BTW. Such a tax would pretty much wipe out the hedge fund industry causing massive liquidation of hedge fund equity positions. Hmmm... I wonder what would happen to the stock market if hedge funds liquidate, Mark? (Hint: look at a current chart of the S&P)
Just another half baked commie with an ego bigger than all hell..... The two party system consists soley of baffoonish legal artists that got the ticket to blabber at a public podium.... You stack in in bullshit....you get bullshit..... ....................................................... Lesson 101..... What is stock.... Stock is supposedly the most efficient capital on earth.... Zero interest nonobligatory debt..... Legal largesse and the baffoonish political shit that continues in the US is ruining society and the purpose of opportunity and money.... They are mentally inept egoists.....just plain fucking idiots.... A crook willfully causes economic loss....but an idiot causes loss from being fucking stupid.... There is a new breed in the US political system.... Crookidiocy........ ........................................................ If these assholes keep up this baffoonish shit.......the exchanges will domicile in another country.....in fact ....this is already happening..... along with the tax base via repatriation....... There are not words in the dictionary for this type of bizarre stupidity.... Word of advise....get rid of the two party system....and forever more let hollywood hire these crookidiots to work in soap operas....all they want is to get stroked like a pet for some stupid childish reason.....
Brokerages would go under, a lot of people would be let go. Traders would need to get jobs, therefore a rise in unemployment. Random Capital Management, the name reminds me of Air Comet (an airline in Spain)
Very small numbers, nowhere near the impact of, say, GM shutting down all its auto plants. Supposedly these are educated folks, without a doubt they will find new jobs in short order. Anything else?
Precisely! We should keep all the low paying jobs and move all the high paying jobs out of the country. Afterall, they are all evil. All 150,000 people who have lost their jobs in finance are evil. So what, China has lowered taxes on its stock markets? China is communist and we are not.
I expect these proposals to increase in the coming months. Pelosi has already discussed this. I wouldn't be suprised if Warren Buffet doesn't come out in favor of it as well, along with Cuban and others. 1000 share trade at 20 using Cubans proposal creates a $200 transaction tax total, in and out. Now, let's say you made two trades. That means your transaction tax total is $400. Now, let's go on with the commission...in and out lets say it's $10....$20 total for two trades. So total in and out costs to trade this stock twice is $420. Now, let's say you made $.50 on one trade. Lost $.25 on the other trade. In other words, you netted $.25 between the two trades. That's $250 for the two trade, before commissions and transaction tax. After commission and transaction tax you lose $170. With no transaction tax your gain would be $230. I think the point is clear here....this type of proposal ends active trading of stocks as a business. Certainly as realists we should expect these proposals to be made. But it's up to us to argue against the proposals. And it's up to us to let our Congressmen, Senators, and President of our disagreement with this type of proposal. If we don't, this type of proposal will be welcomed as a possible solution. In the end, what will happen is it will drive active traders out of the market, reducing liquidity, and probably sending the markets lower. With less volume the likelihood of collecting sufficient transaction tax to actually pay for the bailout becomes less probable. Meanwhile, the parties that actually brought on the crises escape scott free. Banks for instance. Why not come up with a cost levied on the users of the bailout money? In fact, my understanding was that the taxpayers would profit from the bailout...so why the need for an additional tax? Get ready fellas, you're gonna have to fight. OldTrader