............................................ Here is the bottom line.... Never going to happen.... Why ????? You already know.... GS It will be parallel to what is happening with the CFTC....started out lots of blabber....and has been reduced to nothing by Gensler...ex GS.... Same GS strategy here.... GS WILL win....
And it will instantly kill thousands of middle class support jobs in the financial industry. Everything you've ever traded, every system you've ever developed, just toss it away because the ball game will completely change. Nothing you've done in the past will be valid, and most of it will not be sustainable. If you trade anything for a living, or if you hope to in the future, you need to get in contact with your senator or representative and raise the issue of industry-wide unemployment. Go here: https://writerep.house.gov/writerep/welcome.shtml
Yeah, I saw a different blog or article that discussed a very small transaction tax to kill off high freq. trading... that's what I was thinking of.. that might be doable but with the huge investment in infrastructure to enhance high freq trading I think that opposition to a tax like that is going to be furious...
The good thing is, big financial lobby will be on our side when push comes to shove (a rare event). Their campaign contributions are valued by many high powered Dems with influence... and you can count on the Republicans to be against any new tax hikes. On the other hand, we have a very left leaning White House, House, and Senate who are spending money like drunk sailors on weekend pass. Someone has to pay for this shit at some point. Wall Street is the new boogie man, and created every problem from the current recession, to cancer and aids. An easy target for the tax and spend crowd. The talking points need to be that this is a tax on savings and retirement accounts 401k's IRA's, and Pension funds. The 150+ million investors in the country need to understand how bad this will be to them. As traders we are not understood by 99% of the population and our arguments against this will fall on def ears. Joe retiree, Jane middle class investor, and Billy Bob welder counting with a pension, are the people that will be hurt as well. They need to be awakend if this gets traction.
The public needs a placebo..... And some ¨heads on poles¨.... When they see a few ..... ie Rating Agencies ie Lewis....that works with a evil bank.... The public needs to see some guilty heads roll....otherwise they will be talking down anything in finance.... ................................................... Personally cannot wait for the future....a billion Chinese pressing buttons on efficient electronic direct access at a cost of about 20 cents per hundred units.... This WILL happen....and make the US exchanges look like kindergarten....
This would be the same "big financial lobby" that convinced Congress to line its pockets with TARP etc money? Seems to me you've just painted yourself - and by extension, all speculators - as part of the problem.
I read somewhere that in order to make this proposal politically feasible, they were going to exclude 401's from this tax. I'm hoping the financial industry is flexing its muscle and is indeed pushing Congress to not enact this tax. If not, I'm assuming it will go the same it did when Sweden enacted its transaction tax. It will last for about 5 years. During that time Sweden lost a ton of volume and eventually it had to get rid of it. I am very disappointed in CNBC who have for the most part seemed like a cheerleader for this tax. I will call my three representatives in DC on Monday to let them know my opposition to this tax.
I think that if this ever passes "retail" and 401k's etc will be exempt. I've actively traded my RRSP for years as well as my TFSA (Whattttt are those, eh? I'm Canadian) and while there are a ton of restrictions which limit what you can trade by quite a bit, I've managed to make significant amounts of money in them so it wouldn't ruin us if it was structured this way but we'd be taking a big pay cut!