Hum Dinger
Gold Member
- Aug 19, 2008
- 11,653
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I never thought that I'd ever be on the same side as Ilhan Omar, but here we are.
I support the proposed transaction tax. It will hit the high-speed traders more than me or other "buy and hold" investors.
The argument against it is that high-speed traders will just move off-shore to do their trades, fine.
They are nothing but leeches stealing our 401k investments.
Senate Democrats reintroduce bill to create financial transaction tax
A group of Democratic senators on Thursday reintroduced legislation to create a financial transaction tax, arguing that such a tax would help to reduce economic inequality.The bill would establish …thehill.com
"This (transaction tax) makes financial markets fairer and possibly less volatile. As described by Michael Lewis in Flash Boys, high frequency traders (HFTs) can earn profits by front-running other trades by micro-seconds, an activity that raises costs for legitimate traders and provides no value to society. HFTs account for roughly half all stock trades and much of their business model would be threatened by the proposed transactions tax.Congress wants to tax stock trades. Investors shouldn't fret. | Brookings
Aaron Klein makes the case for a financial transaction tax.www.brookings.edu
Under current law, someone selling or buying $1,000 of stock pays just over two cents in transaction taxes. This existing fee raises over $1.5 billion per year. The proposal would add a tax of $1 to that transaction."
Geez, I thought I was the only one in the world that realized that market volatility was a mechanism for shifting log term (401k) investment money into the hands of short term investors.
I don't care where the government chooses to spend the money. This tax has the intrinsic benefit of reducing market volatility and help us 401k investors keep our money!
OK show my how much money you would have had in your 401K if no one day traded.
Given that tens of billions of 401k dollars are poured into the markets every week, the law of supply and demand dictates that markets should be constantly and steadily going up. However, short term traders create volatility. The short term traders sell high and buy low - that shift the money that should have gone to long term investors into their pockets.