Will the Tobin Tax Kill Retail Forex Trading ?

...Only to help out for about three months as a Forum Mod....It was not permanent...Could not devote time for it as more admin work..

I see. Well, I'm glad you're still posting anyway - you make some interesting points.

Can I ask what prompted you to give up trading?
 
Hi Black Swan,
RE: "In our capitalist global society Govts. don't make these decisions, they squawk, act tough then announce the decisions of big business once big business has made the decisions'"

If you were to dig a bit, you'd find that Govts and big business are one and the same.
http://www.tpuc.org/content/hall-shame
 
Rest easy fx-ers, from big Mervyn today:

"In all the components of radical reform that I've discussed ... I think a Tobin Tax is probably bottom of the list," King said. "I think the levy is a much more serious proposal because it does go to the heart of the too-big-to-fail issue."
 
I see. Well, I'm glad you're still posting anyway - you make some interesting points.

Can I ask what prompted you to give up trading?

Many issues....Have been trading since 1988 and then started using Indexia Software that used to run in DOS....And used it until 2002 then moved onto Sharescope and Metastock...All which I still I still use it just to keep in touch...Have Investment Portfolio...Some dead dogs in it....For my shame Durlacher....Zytronic.to name some..!..And some good ones as well...

Have Professional Degree and Distingction in Thesis that I did...Had a Business, Property Investment that has been going on since 1996....

And then one day I decided what I am trading for...?..And it was taking a lot of my time...

So have taken time off since last two years doing nothing...Wife has a Business and I am spending more time with Wife and kids....Travelling....Reading....Walks in Countryside where I live now...Spending time in Pubs and curry houses with friends...from Indexia days and some from T2w.....

I hope to return back to tading one day....!!
 
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Many issues....Have been trading since 1988 and then started using Indexia Software that used to run in DOS....And used it until 2002 then moved onto Sharescope and Metastock...All which I still I still use it just to keep in touch...Have Investment Portfolio...Some dead dogs in it....For my shame Durlacher....Zytronic.to name some..!..And some good ones as well...

Have Professional Degree and Distingction in Thesis that I did...Had a Business, Property Investment that has been going on since 1996....

And then one day I decided what I am trading for...?..And it was taking a lot of my time...

So have taken time off since last two years doing nothing...Wife has a Business and I am spending more time with Wife and kids....Travelling....Reading....Walks in Countryside where I live now...Spending time in Pubs and curry houses with friends...from Indexia days and some from T2w.....

I hope to return back to tading one day....!!

Sounds nice! (y)
 
Hi Black Swan,
RE: "In our capitalist global society Govts. don't make these decisions, they squawk, act tough then announce the decisions of big business once big business has made the decisions'"

If you were to dig a bit, you'd find that Govts and big business are one and the same.
http://www.tpuc.org/content/hall-shame

Of course, but thanks for the link. Back on thread, here's a piece from the Telegraph on the Tobin tax;

Mervyn King rubbishes Gordon Brown's Tobin plan, allies himself with Barack Obama

Gordon Brown’s attempts to cast himself as the architect of financial reform were dealt a humiliating blow on Tuesday after the Governor of the Bank of England rubbished the Prime Minister’s flagship proposal and allied himself with President Barack Obama...

Addressing the influential Treasury Select Committee, Mervyn King dismissed Mr Brown’s plan for a tax on financial transactions, the so-called “Tobin tax”. He said: “I don’t know anyone on the international circuit who’s enthusiastic about it ... Of all the measures being considered, the Tobin tax is probably at the bottom of the list.”

The Prime Minister has been a staunch advocate of the tax since first floating the idea at November’s G20 meeting at St Andrews. Earlier this month, he wrote in a newspaper article that “the IMF is looking at ... a global financial transactions tax” and, in December, the Treasury said “international coordination is both feasible and enforceable”.

Mr King said there was “much more support for a US-type levy” to create an insurance fund to bail-out the banks in the event of another financial crisis. Although Mr Brown also raised the prospect of an insurance levy at St Andrews, he made it clear he favoured a Tobin tax.

President Obama has announced plans to raise $90m from banks in the US with a 0.15pc tax on their unfunded balance sheet. The Governor said the structure of the US levy could be used to build up a resolution fund for future crises

http://www.telegraph.co.uk/finance/...in-plan-allies-himself-with-Barack-Obama.html
 
I mentioned thg about Brown and Tobin taxes here a few days back.

I never actually researched whether Brown had seriously proposed it. Or if his enemies in the press had pretended he had.
Or whether he had been the subject of a ploy to damage his credibility with impossible( and daft) ideas. I never spotted any direct quotes from Brown.

I wonder, is it a plan to separate state bail out banks, from brokerage- investment cos?
Was he saying "pay us a dividend because we bailed you out OR we'll think about a transaction tax on you( not other traders)?
 
Of course, but thanks for the link. Back on thread, here's a piece from the Telegraph on the Tobin tax;

Mervyn King rubbishes Gordon Brown's Tobin plan, allies himself with Barack Obama

Gordon Brown’s attempts to cast himself as the architect of financial reform were dealt a humiliating blow on Tuesday after the Governor of the Bank of England rubbished the Prime Minister’s flagship proposal and allied himself with President Barack Obama...

Addressing the influential Treasury Select Committee, Mervyn King dismissed Mr Brown’s plan for a tax on financial transactions, the so-called “Tobin tax”. He said: “I don’t know anyone on the international circuit who’s enthusiastic about it ... Of all the measures being considered, the Tobin tax is probably at the bottom of the list.”

The Prime Minister has been a staunch advocate of the tax since first floating the idea at November’s G20 meeting at St Andrews. Earlier this month, he wrote in a newspaper article that “the IMF is looking at ... a global financial transactions tax” and, in December, the Treasury said “international coordination is both feasible and enforceable”.

Mr King said there was “much more support for a US-type levy” to create an insurance fund to bail-out the banks in the event of another financial crisis. Although Mr Brown also raised the prospect of an insurance levy at St Andrews, he made it clear he favoured a Tobin tax.

President Obama has announced plans to raise $90m from banks in the US with a 0.15pc tax on their unfunded balance sheet. The Governor said the structure of the US levy could be used to build up a resolution fund for future crises

http://www.telegraph.co.uk/finance/...in-plan-allies-himself-with-Barack-Obama.html


......Merwyn had no clue when recession was approaching....he had no clue as to how to deal with it until last minute.....he still hasen't got a clue how to deal with it....So Brown probably will not lose sleep by being rubbished by him...!!

...He is just an Inflation Nutter.....And that's his job....He should stick to that..!

...If it was Blachflower then there was some credibility...!
 
......Merwyn had no clue when recession was approaching....he had no clue as to how to deal with it until last minute.....he still hasen't got a clue how to deal with it....So Brown probably will not lose sleep by being rubbished by him...!!

...He is just an Inflation Nutter.....And that's his job....He should stick to that..!

...If it was Blachflower then there was some credibility...!

In terms of credibility, King is streaks ahead of Brown. Brown won't even be here in 6 months anyway, King will though.
 
......Merwyn had no clue when recession was approaching....he had no clue as to how to deal with it until last minute.....he still hasen't got a clue how to deal with it....So Brown probably will not lose sleep by being rubbished by him...!!

...He is just an Inflation Nutter.....And that's his job....He should stick to that..!

...If it was Blanchflower then there was some credibility...!
:LOL:
Nice one, I see what you did there...;)
 
In terms of credibility, King is streaks ahead of Brown. Brown won't even be here in 6 months anyway, King will though.

...Streets or streaks...whatever..

..Give ONE exapmple of King or Brown talking about impending Financial Tsunami in Banking Sector....Give a date when it was first mentioned and you will see...

...BOE Governer has NO other authority then to keep an eye in Inflation...and Report it back to COE....That's all the Independence he has...

...So it is suprising now that he is chirping like a bird.....when he kept his mouth shut before...

With this Recession, everyone suddenly has become experts on everything - from sliced bread to a donut..!
 
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...BOE Governer has NO other authority then to keep an eye in Inflation...and Report it back to COE....That's all the Independence he has...

That will change when the Tories win the election as they are intent on scrapping the FSA and giving the powers to the BOE.


Paul
 
That will change when the Tories win the election as they are intent on scrapping the FSA and giving the powers to the BOE.


Paul

That's going to work, isn't it.

The FSA may indeed be useless, but to give yet more power to an institution that hasn't exactly covered itself in glory either doesn't seem like a radical improvement.

I suppose it will save a few salaries, but even that is doubtful.
 
That will change when the Tories win the election as they are intent on scrapping the FSA and giving the powers to the BOE.


Paul


...Tory PM...Tory COE...cozy neighbours....drop the rates will ya mate..election is looming...raise it after...!

What will be different than 80's when maggie used BOE purely as a Monetry unit and NO fiscal policy at all...to control everything under the sun...including inflation...!
 
What will be different than 80's when maggie used BOE purely as a Monetry unit and NO fiscal policy at all...to control everything under the sun...including inflation...!

I have no idea, I was just pointing out that the BOE and therefore its chairman is not going to be as powerless as was implied.


Paul
 
Well you know what will happen when one wants to control inflation purely by Monetary Policy alone without Fiscal Stimulus.....Point I am trying to make is that it will NEVER be possible for Bank of England to achieve a complete independence in it's operation - which it needs - as Politicians will ALWAYS would want to control aspects...

And it is also no point having a BOE Governer, who will keep quite when times are 'good' and start to chirp like a parrot when things give way.....Now he wants smaller Banks....really..?

However part independence is a lot better then before in last Tory administration when it was used to Political advantage...
 
Extract from site below....Makes it very obvious what Merwyn was upto....and How incompetant the MPC is....

http://blogs.wsj.com/economics/2010/01/20/blanchflower-says-sun-has-set-on-uks-rate-setters/

David Blanchflower, a consistently dovish former member of the Bank of England’s Monetary Policy Committee, or MPC, says the rate-setting body missed the U.K. recession entirely and should be disbanded.

“It is now my view that the MPC’s days are numbered, certainly in terms of its remit and probably its membership,” he wrote in a column published in current affairs magazine the New Statesman Tuesday. “After the [general] election we are going to have to reconsider who sets monetary policy.”

Blanchflower said inflation targeting didn’t protect the U.K. from the greatest economic shock of our lifetimes. The MPC’s focus on the consumer price index as a measure of inflation also excluded the major variable that was increasing a lot - house prices, he said.

“The MPC missed the recession entirely,” he said. “The recession was much deeper because of their failure to act. The MPC was asleep at the wheel. Its inability to communicate adequately what quantitative easing is supposed to do suggests it has learned little.”

Blanchflower said targeting CPI alone no longer has credibility. The U.K. should have a system closer to the U.S. Federal Reserve’s broader remit which takes into account employment, stable prices, and moderate long-term interest rates, he said. “The last thing we need is for interest rates to rise any time soon,” Blanchflower said. “Inflation is going to jump in the short term because of the VAT increase, but will then fall back sharply.”

Official data released Tuesday showed the U.K.’s annual inflation rate, as measured by the consumer price index, posted its largest jump on record to 2.9% in December from 1.9% in November due to a cut in value-added tax, a drop in oil prices, and pre-Christmas discounting in stores in the final month of 2008.

Blanchflower is no stranger to MPC or BOE criticism. In December, he accused Governor Mervyn King of keeping “vital” information from him at the height of the financial crisis, in the aftermath of the collapse of Lehman Brothers. Earlier, he said and the three other external members of the MPC weren’t kept in the loop during the crisis. “We were not told what was happening to British banks such as Northern Rock, Royal Bank of Scotland, Lloyds, Bradford & Bingley or Alliance & Leicester. Or to U.S. banks such as Lehman Brothers or Bear Stearns.”
 
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