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EYE-BALL on – Finally – European Leaders consider a Financial Markets transaction tax –

Finally – European Leaders consider a Financial Markets transaction tax –
The CNBC Network reported a story overnight about discussions within the EURO Leadership that stated they agreed to float the idea of a ‘Financial Markets Transaction Tax’. The story is pasted below –

Linked on-line here:

France, Germany Rule Out Euro Bonds to Fix Debt Crisis
Published: Tuesday, 16 Aug 2011 | 2:00 PM ET
By: CNBC.com with Reuters and AP

The leaders of France and Germany disappointed financial markets Tuesday by ruling out issuing euro bonds to fix Europe’s debt crisis.

Instead, they agreed to float proposals in September for a tax on financial transactions and push for closer joint governance of economic policy.

German Chancellor Angela Merkel speaks next to France’s president Nicolas Sarkozy at the Elysee presidential palace in Paris on August 16, 2011 after a meeting between the two leaders on debt crisis … [continues].

The idea of a ‘financial markets speculative trading tax’ was floated by the EYE-BALL Guru many months ago as a way to reduce speculation and bring real investors into the market as opposed to speculators – story linked here – and statement appears below –

Regulatory Controls:

First decision – all global speculative trading profits cops a 100% tax and write downs only get 30c in the dollar carried forward. That applies to ‘short’ as well as ‘long’ positions and extends to all derivatives markets as well – this stays in place for three months and is then reviewed.

If the Regulators are serious about taking such a measure to curb speculation – it will be a great step forward – purging the markets of a curse that contributed largely to the GFC and its fallout and the ‘greed’ of speculative monies hunting the globe for an easy take – would go a long way to healing the markets.

Forcing genuine buyers to pay more and leaving them high and dry when they sell and drive markets up and down with weight of money is why speculators ply their trade. Applying a tax on the short term turnarounds for this style of trading is long overdue.


The EYE-BALL Opinion …

  1. Michal Rosenfield
    May 10, 2012 at 1:57 pm

    One again, your articles is very good.thank you very much.

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