Pulling Keynes' teeth | 26 comments (26 topical, 0 editorial, 0 hidden)

Re: Pulling Keynes' teeth (none / 0)

So basically what we need is a slight adjustment in global regulations in order to make all shares tied to a minimum time of ownership - let's say 2 years ;-)

Shares would not be traded nor used as collateral during that time. The 2 year period would start from the purchase of the shares - to ensure an even volume on the market ;-)

Dividends would continue to be paid.

In one stroke we escape the quartal mentality, heavy liquidity, and bring some seriousness into investment.

It's a bit like owning a racehorse really. Or 'put your money where your mouth is and come back in 24 months'

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 10th, 2006 at 03:34:55 PM EST

A large number of ignorant people (none / 0)

Was Keynes referring to me?

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 10th, 2006 at 03:36:57 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

The Tobin tax wouldn't be bad, either.

Nothing is 'mere'. — Richard P. Feynman

by Migeru (migeru at eurotrib dot com) on Sun Sep 10th, 2006 at 03:41:34 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

Well I didn't want to mention that for fear J would call me a crackpot again....

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 10th, 2006 at 03:46:32 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

The introduction of a substantial overnment transfer tax on all transactions might prove the most serviceable reform available, with a view to mitigating the predominance of speculation over enterprise in the United States.

Tobin and Keynes agree.

Nothing is 'mere'. — Richard P. Feynman

by Migeru (migeru at eurotrib dot com) on Sun Sep 10th, 2006 at 03:48:23 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

Poor Tobin is a little discredited these days, but I still find merit in the idea that all financial transactions should be taxed at a fixed rate (which I have seen quoted as around 6%).

This would apply to all transactions, including right down to getting cash from an ATM.

This has to be set against having no other personal or corporate taxes on income. So it would be 6% flat.

The real benefit would be that a small footprint lifetsyle could lead you to feel great dignity.

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 10th, 2006 at 03:55:17 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

6% !!!

I though the Tobin Tax was a minute amount, designed to slow down huge, frequent international finance transactions but to leave alone the individual investors.

Nothing is 'mere'. — Richard P. Feynman

by Migeru (migeru at eurotrib dot com) on Sun Sep 10th, 2006 at 04:08:36 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

You need the liquidity, otherwise people will just put their money in CDs (hoarding).

In Spain until at least a few years ago, there was no capital gains tax on shares which were kept for a sufficient number of years (maybe 10? 18?) I don't know whether that's still the case.

Nothing is 'mere'. — Richard P. Feynman

by Migeru (migeru at eurotrib dot com) on Sun Sep 10th, 2006 at 03:46:49 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

Now there's a decent compromise ;-)

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 10th, 2006 at 03:57:05 PM EST
[ Parent ]

Money in hoarding CDs (none / 1)

Now I think we can get the music business behind this proposal...

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 10th, 2006 at 03:58:35 PM EST
[ Parent ]

Re: Money in hoarding CDs (none / 0)

Why is all comment text in italics? Or I am I the only one to experience it <turns round suddenly in a paranoid kind of way>

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 10th, 2006 at 04:00:41 PM EST
[ Parent ]

Re: Money in hoarding CDs (none / 0)

Or I am I the only one to experience it

Yes

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Sun Sep 10th, 2006 at 04:09:36 PM EST
[ Parent ]

Re: Money in hoarding CDs (none / 0)

Now it is back to normal with no intervention on my part - strange...

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 10th, 2006 at 05:51:52 PM EST
[ Parent ]

Re: Money in hoarding CDs (none / 0)

Don't know, me duck. Why, is this comment in italics too?

by afew (afew(a in a circle)eurotrib_dot_com) on Sun Sep 10th, 2006 at 04:13:27 PM EST
[ Parent ]

Re: Money in hoarding CDs (none / 0)

Now that's a bit sly o' yer, me duck

You can't be me, I'm taken

by Sven Triloqvist on Sun Sep 10th, 2006 at 05:52:48 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 1)

If you want to play with share definition, here are a few things that I would suggest:

right now when an individual buy shares indirectly (mutuals funds, retirement invested in stock, ...) two rights are transfered: the right to choose what stock to buy (let's say rightly so) and the right to vote at shareholder meetings. I would cancel this second right: your money manager does the stock picking, but you get to vote.
currently to get a dividend from a share, you just buy it at the right date five minute before closing and sell it the next day, you get the same dividend as someone who held the stock for a full quarter/year or more. I would link the dividend paid to a given to the time the holder hold on to the share.

by Laurent GUERBY on Sun Sep 10th, 2006 at 04:34:30 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

Especially the first is extremely important. I'll put my thoughts on that together later.

Nothing is 'mere'. — Richard P. Feynman

by Migeru (migeru at eurotrib dot com) on Sun Sep 10th, 2006 at 04:38:00 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

Thanks! Ping me if I don't react :)

by Laurent GUERBY on Mon Sep 11th, 2006 at 06:35:54 AM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 1)

As for dividends the effect you are describing it is usually factored in to the price. So the day after the dividend is declared the price drops by an equivalent amount. If the dividend is only a few cents per share the effect may not be noticeable on a volatile stock.

Most bonds are traded so that interest is figured daily and the buyer has to pay the seller the proportionate amount of accrued interest which they get back along with the interest from the rest of the period at the next payment date.

Policies not Politics
---- Daily Landscape

by rdf (robert.feinman@gmail.com) on Sun Sep 10th, 2006 at 04:56:00 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

The point was to encourage long term ownership. BTW I did an article in french on the dividend ex date arbitrage

by Laurent GUERBY on Mon Sep 11th, 2006 at 02:53:15 AM EST
[ Parent ]

Pulling Keynes' teeth | 26 comments (26 topical, 0 editorial, 0 hidden)

Top Diaries

What's Next, After the Slam?

Shock Election Loss Rutte IV In Senate Race

Honduras Establishes Close Ties with China

A Return to Normalcy?

A Grand Slam for Ireland?

NI Protocol: It's all over bar the shouting?

Recent Diaries

Struggle NWO Unipolar or Multilateralism

Neo-Nazi Marches Across Europe

Fascism Unites America, Israel and EU Neo-Nazis

What's Next, After the Slam?

Settler Extremism Blessed by Jerusalem Leaders

US Interference In Lebanon-Syria-Ira
q

City Agriculture - March 17, 2023

Shock Election Loss Rutte IV In Senate Race

Stalemate Endures, Pessimism Grows, Deaths Mount

Honduras Establishes Close Ties with China

A Grand Slam for Ireland?

Living In Spain and Social-Democracy

USA Censorship Act to Kill Disinformation

Flying Fortresses and Nuclear Threat

Universal Criticism Asylum Threshold EU Fortress

China Trade and Relations

SBU As a Terror Network

A Return to Normalcy?

Georgia and Foreign Agents or Spy Law

Nord Stream Blasts Timeline of Denial

Occasional Series