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Why Peter DeFazio’s ‘Let Wall Street Pay for Wall Street’s Bailout Act of 2009′ Stinks

February 20, 2009 at 8:05 am
by Timothy Sykes

Watch these 7 free video lessons on how I became a millionaire

PS Tune into LiveStock today 1-2PM HERE & we’ll be discussing this very issue….heatedly

HERE’S The bill in legal jargon…basically congressonobdyman Peter DeFazio wants to impose a 0.25% transaction tax on the “sale and purchase of financial instruments such as stock, options, and futures.”

As the petition (sign it if you believe in reason, freedom and/or you want the stock market to ever go back up again) against such misguided legislation states:

Finally, such a tax will undoubtedly affect the number of shares traded on an absolute basis, thus reducing liquidity – a necessary ingredient in the effective pricing of assets. It’s the complete lack of liquidity, for example, which made collateralized mortgage obligations effectively worthless.

The body of the bill suggests that such a tax would have a negligible impact on the average investor. I beg to differ. For example, a $10,000 trade (or approximately 100 shares of stock in Apple, Inc.) would increase the cost of a round trip transaction by $50. 100 shares is generally considered to be a minimum size for a trade, which would devastate any small business executing even a handful of similar trades each day.

That’s right, DeFazio ‘DeGenius’ wants to make you, the small-time investors/traders pay for the colossal bungling that is this stimulus bill…day raders and forex freaks would be especially hurt. Forget about those of you making $10,000 trades, if you’re trading $100,000, do you really want to pay $500 in bullshit taxes? $2,500 on a $500,000 trade? $10,000 on a $2 million trade? Oh yes, it could get ugly FOR EVERYONE (probly wiping out/seriously injuring the remaining hedge funds & then everyone will go back to their roots a la Tim Sykes and make more $ selling newsletters & instructional trading DVDs (no government taxes on that!….yet)

Forget the SEC’s mishandling of short selling financial companies (remember that ban, that really worked well, huh? BAC, C were trading in the $20s when ‘the drops in stock price were due to short sellers’! LOLOLOL), the SEC’s failure to catch either of these $50 billion fraudsters (they prefer going after high profile but useless people like Martha Stewart & Mark Cuban for a few hundred grand!)–this bill tops anything the ignorant could ever pull off….think of it as ignorance multiplied by a million or so.

The good news is that there’s still time to block this shit. Your mission young/old/successful/failed/wise/addicted/rich/poor trader is simple: you gotta stand up for yourselves and vote to block this doofus from making you pay for this whole shitshow that’s caused by neanderthals like that home flipper you know (we all know one or two, right? Feel free to smack ‘em across their big dumb fat over-leveraged/now-whining-about-it-faces)

SIGN THE PETITION TO BLOCK THIS LUNACY NOW (& send this blog post to your friends or anybody who’s ever made a stock, options or forex trade in their lives or plans to in the future because online discount brokers have made this game far easier, this is a step in the wrong direction, kinda like prohibition for a nation full of alcoholics!)

Posted in Adapting, idiots

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  • Josef

    What is wrong with the country? Nickle and Dime’in everyone these days. And for what? I don’t see any extra services/products being offered or needed. I hear about Bank of America charging withdrawal/debit card fees and the likes to unemployment benefit recepients. These folks are unemployed and receiving help from an over-extended, well underfunded state funded unemployment benefits program, in which the cause for all the unemployment in the country are the Banks. BoA has money to buy two worthless companies but at the same time looking for a, something like, $80 billion handout from the Gov.

    You’ve got State’s starting programs that charges state resident a fee/tax for every mile driven within that state and must pay the entire lump-sum, everytime, at the gas pump. Thats crazy! You’re telling me, I drive 100 miles to visit my grandmother, need to fill up on the petro, and I have to pay gas and a State transportation tax. All of which must be paid upfront.

    I can’t even visit the laundromat without being nickled and dime’d. Laundromat’s are charging fees just to use the “change for a dollar” machines. I give the machine a dollar and it give me back $.75; a $.25 change fee taxed on for change. LOL Its crazy!

    Now you tell me, there’s a guy that wants to tax my investment trades. I already pay $20+ round-lot to trade! Funny part is, all these taxes – but no additional services. What would “I” really gain to pay a trading tax. Nothing! But if you look hard enough, the buck always stops to one man … one guy , that will benefit from taxing traders.

    What is going on … A President giving away money, all willie nillie. Billions given away to failed banks and auto makers, for what? If I’m a “failed citizen”, I dont get billions of dollars, no, I get evicted … put out on the streets with no Gov assistance. Gov paying out Billions to companies but only a few hundred bucks to its tax paying citizens. Don’t get me started on the SEC. The lights don’t come on (in their head) – to investigate – until ALL the money is long gone and the damage is done. Now the SEC is a useless organization, we no longer need. I read about the guy that went from $700K to $10 a hour because he lost his entire life savings investing with Bernie Madoff.
    Link: http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=12126414&ch=4226713

    I don’t see the SEC or the GOV giving him a handout. Just pathetic!!!!
    Sorry Tim about the long rant …

  • http://www.yahoo.com phi

    this is one of the most absurb from congress — you can’t keep on taxing money that is already tax. they should focus on brokerage and tax them. this bill will def hurt small investor like you and me. wallstreet tricksters like madoff, thain, lewis, degeius and all others have fled long ago. you can sign the bill and let your congressionman know at the link below.

    http://www.rallycongress.com

  • http://www.yahoo.com phi
  • Big T

    It is all due to ignorance. Americans are gonna cheer this, and totally destroy my and your life. I sent this to the petition, being a professional daytrader:

    Contrary to popular belief, not all daytraders are rich. I would be ruined by this, and I make less than 100K a year as a retail daytrader. Daytraders add critical liquidity, and passing this will WIDEN the gap between rich and poor, because wealthy floor traders will get exemptions via lobby money perks, while “little guys” will perish, who already pay for taxes, slippage, commissions, etc. The only people getting rich will be brokers. Standard trading will be like premarket conditions, once that liquidity dries up, rich will allow rich hedge funds and other big players to manipulate free market prices.

    Far from punishing rich speculators, it will hurt small business daytraders like me, and even ordinary investors who buy and hold and do not have people to buy their stocks if they need to exit quickly for whatever reason. This is a horrible idea in a time where uninformed people do not think it through beyond their desire to punish perceived villains, and it has failed in other markets worldwide, leading to elimination or downscaling of the tax amounts. It destroys free markets. My entire life will be ruined by this. I should not have to pay taxes on individual transactions, given my volume of needs, it would be ruinous.

    People who trade less frequently should not be given an artificial huge advantage just because they do not trade intraday. It is not the purpose of the government to demonize speculators or speculation or pick and choose between types (as buy and hold, long or short, is ALSO speculation) of traders, punishing some disproportionately. It also taxes people who earn their LIVING (like me) on income from daytrading TWICE, since they will owe income taxes on all gains as well, as I understand it. In other words, it would put me and other small scale retail daytraders, with 25K max size accounts, out of business overnight.

  • Big T

    If this tax passes, even low level scalping, like 10 to 20 roundtrips a day, would require a huge account size, because the fees on the tax would be ruin for daytraders.

    I am doing everything in my power to stop it, since my entire income is dependent on this, and since one must also pay taxes on all profits, it is like being taxed TWICE, massively, punitively, singled out irrationally by power mad politicians, aided by non-financial non-stock market types who are typical Americans, and that is like being a Salem Witch hunted victim.

    Please, everyone, Tim Sykes especially, get on TV on CNBC and fight this, stage rallies and protests, because this would also ruin REGULAR investors, not due to the tax, because they would not trade actively, but because they would destroy liquidity and markets overnight with this madness.

  • Big T

    http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax/

    http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax/

    Please visit, sign, and send on to your congress and senator, they provie free email to them and a pay service. You must mail the entire Capital Hill, and say this must be destroyed or the USA is finished!

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