I think this makes a lot of sense, except for 3 things 1) I didnt cause the problem 2) I dont benefit from the bailout and was against it 3) I have to pay the tax, and will lose yet another occupation (tech was the last one, thanks for the H-1bs congress) In my opinion, it is the CME we need to get on our side they didnt get any TARP money, and they will be GONE if this passes I could live with this if CME were exempt is there anyone influential in washington, who came from chicago? besides the unfairness and inaccuracy of this 'plan' is the self defeating nature of it. THe whole point of TARP, is to make 'unpriceable' 'illiquid' (fancy description for worthless) 'assets' more liquid. Yet, they're going to put a transction tax on the round trip, which will only make the TARP supposed 'asset'even more illiquid, because your breakeven point just went a lot further against you, before you even started stupid, stupid fucking people like prosecuting the teller to teach the bank robbers a lesson
If this thing passes you must start looking for a real job. Chicago unemployed waiting list: http://unemployed.meetup.com/cities/us/il/chicago/
I think when discussing this it needs to be pointed out how much it would hurt the "active investor", not just the "trader". If you just turn your portfolio over a couple/few times a year, this would end up costing you over 10% of your capital over a ten year period. Now think how much it would cost a young investor till the time he retires. And this is on top of capital gains taxes! Another example of punishing responsible people doing the right thing, while rewarding the companies and individuals who caused this mess.
Bears21 posted this on previous thread. He is exactly right. It will just change the way we trade. Broker dealers will be exempted from this tax, how else could they make markets and provide liquidity. As a matter of fact, liquidity as a stand alone argument is probably reason enough this will never pass. After DOJ study of NASADQ in mid-nineties wide spreads were first attacked. This argument eventually led to decimalization in all equities. Spreads would widen dramatically because of cost of doing business and lack of liquidity. Would paying for the bill at the expense of investors, who were victims in crisis, and not the brokers/banks that were at the root of the reason for bailout, ever pass?
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