"Be Careful what You Wish For: [99ers]: Like Prohibition, Transaction Tax would only benefit Crooks

Enlightened Self Interest | ZeroHedge

I’m half serious and half joking this morning. I’m looking at the TV and all of the OWS stuff that is happening around the world. This is gathering speed very quickly now. Anyone who thinks this is going to go away in a few days is just nuts. One global response from the “Deciders” to the current protests could be a transaction tax. That would be “popular”. 

Enlightened Self Interest | ZeroHedge

The left side of my brain is with Rogoff. A transaction tax would kill liquidity/capital formation. That would result in a huge spike in volatility. This, in turn, would result in broadly lower equity multiples. The connection between stocks and the economy is too tightly correlated. A very sharp downturn in the economy would have to follow. For these reasons, I’m violently apposed to a transaction tax. The right side of my brain says, “Bring it on”. I’m confident that I can survive and thrive in that environment. Fortunes were made in the 30’s. What may come will be no different.

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