Comments on: ANALYSIS-Next phase of financial crisis may be the hardest http://blogs.reuters.com/financial-regulatory-forum/2010/05/24/analysis-next-phase-of-financial-crisis-may-be-the-hardest/ Fri, 19 Apr 2013 00:29:31 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Nymne http://blogs.reuters.com/financial-regulatory-forum/2010/05/24/analysis-next-phase-of-financial-crisis-may-be-the-hardest/comment-page-1/#comment-930 Nymne Mon, 24 May 2010 17:45:48 +0000 http://blogs.reuters.com/financial-regulatory-forum/?p=7601#comment-930 A possibility is to have the financial sector and investors contributing to ease the burden these packages for financial stability have put on taxpayers by introducing transaction taxes. For example, Germany had such tax (1-2,5 promille per transaction, depending on type of transaction) until -91. Had this tax been in place today it would have generated 30 biljon €. The german deficit is this year 70-80 biljon €. A tax like this will not majorly affect long-term investment required for economic growth, but will cool down rapid transactions with small margins (speculation). For the economy as a whole, it is better if the financial sector shares the burden in this way, than if some parts would carry the losses of defaults. The financial sector is expected to disagree and fight such solution with teeth and claw. A possibility is to have the financial sector and investors contributing to ease the burden these packages for financial stability have put on taxpayers by introducing transaction taxes. For example, Germany had such tax (1-2,5 promille per transaction, depending on type of transaction) until -91. Had this tax been in place today it would have generated 30 biljon €. The german deficit is this year 70-80 biljon €.
A tax like this will not majorly affect long-term investment required for economic growth, but will cool down rapid transactions with small margins (speculation). For the economy as a whole, it is better if the financial sector shares the burden in this way, than if some parts would carry the losses of defaults. The financial sector is expected to disagree and fight such solution with teeth and claw.

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