Another interesting article on the subject that I bookmarked a few weeks ago:
BBC News - Could a transactions tax be good for capitalism?
Quote:
"An EU financial transactions tax would be both desirable and feasible, argues an influential economist, Avinash Persaud, [...] his argument is based on the long-term impact of the UK's Stamp Duty Reserve Tax, which levies 0.5% on transactions in UK shares.
[...] the levy has been around in its current form for 25 years - and for longer in other incarnations - and hasn't been associated with the mass departure of equity trading away from the UK.
In fact, the London Stock Exchange has been remarkably successful in persuading international companies to list their shares in London: it has probably been the most successful stock market in the world, in that respect.
[...] a transactions tax might reduce the volume of transactions - especially in derivatives - designed for purely speculative purposes by increasing their cost.
[...] there is some evidence those deals increase irrational exuberance and manic depression in markets, to the detriment of businesses trying to finance themselves, and are also devices for extracting excessive fees from more gullible businesses [...]" (emphasis is mine)
A long time ago in a galaxy far, far away, financial markets were created for businesses and investors to meet. Or so the old legends say - I was not there yet, I am old but not that old :-P
On the same subject: BBC News - How scary is a financial transactions tax?
