Merkel/Sarkozy demand £13B UK tax to prop up the Euro

[TestMangler]

Yeah a transaction tax is a god idea.

So is an email tax, and a forum post tax.

And it should be retrospective too

[Jog On]

Banks scorn Franco-German transaction tax proposal | Reuters

Germany's cooperative banking association said any tax would fail to bring stability to markets if it only operated in the euro zone. "For all the legitimate efforts at stabilizing financial markets, we feel a financial transaction tax which is limited to the euro zone is not effective," the BVR said.

European Central Bank President Jean-Claude Trichet has said in the past that unless such a tax was introduced globally, it would not work.

German exchange operator Deutsche Boerse, whose shares were down 6.0 percent at 8:50 p.m. EDT, said: "The tax provides yet another incentive for transactions to move to jurisdictions where it is not applicable," adding it would be a gift for unregulated marketplaces."

Well that settles that then. Perhaps the politicians should STFU and leave the clever stuff to the people who know how these things actually work..

Even Trichet opposes it!

[AtW]

Trichet is a banker.

They don't say it's wrong, they merely say that if done in Europe only then it won't have full effect, but it should have high enough impact and will make it easy for UK to join and later USA.

[Jog On]

Trichet is a banker.

They don't say it's wrong, they merely say that if done in Europe only then it won't have full effect, but it should have high enough impact and will make it easy for UK to join and later USA.

UK and USA to join what? The Tobin tax? Isn't the whole point to tax transactions in the UK?

[Bright Spark]

Transaction tax is a good idea - it will remove High Frequency Trades and generally make people invest longer term because buy/sell would cost too much.

If you are not sure then don't buy it (c) me.

Hey I work in the city on HFT systems!, this tax would affect me and other contractors
as there would be less demand for people to develop the systems.

most of the HFT would simply switch to the US where there is already about 70% of trading in HFT, it would only work if it applied everywhere.

[AlfredJPruffock]

Hey I work in the city on HFT systems!, this tax would affect me and other contractors
as there would be less demand for people to develop the systems.

most of the HFT would simply switch to the US where there is already about 70% of trading in HFT, it would only work if it applied everywhere.

Isnt that like saying - Because I work in a nuclear Warhead factory i would be really angry if they abolished nuclear weapons ?

No hang on I've gone too far ....

[AtW]

Isn't the whole point to tax transactions in the UK?

The whole point is to get that tax anywhere serious - Eurozone is big enough to do it, making UK do it would be ideal but impossible in my view (too many vested interests).

[Mich the Tester]

Isnt that like saying - Because I work in a nuclear Warhead factory i would be really angry if they abolished nuclear weapons ?

No hang on I've gone too far ....

Yes, you're going way too far. Nuclear weapons don't have anything like the destructive capacity of high frequency trading systems and they're probably better tested as well.

[AtW]

Hey I work in the city on HFT systems!, this tax would affect me and other contractors as there would be less demand for people to develop the systems.

Tough, you'd have to find another job that does not result in disruptive behavior.

[AlfredJPruffock]

Yes, you're going way too far. Nuclear weapons don't have anything like the destructive capacity of high frequency trading systems and they're probably better tested as well.

Thanks Mitch - Ive been at odds with myself over this new job ( or should I say gig ?) working at the Freedom Systems Nuclear Warhead Factory (c) - well; the boss would be cross if I were to blab too much ( you can't be too careful these days) altough it is reassuring to know I could be doing a lot worse in the moral context - ie working as someone in the City.

OK back to work - Jings I cant remmeber if I shipped that last Warhead to North Dakota or North Korea - oh well fingers crossed ....

Back to work - Idle hands are the Devil's workshop