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>By the numbers: Sanders plans to pay for the action by hitting Wall Street with a tax his campaign says will raise $2.2 trillion over 10 years, according Vox.

jquery 7y ago
As we learned in 2008, taking $2.2 trillion from "Wall Street" will have major effects on "Main Street" (we nearly had a total economic meltdown over Wall Street holding a "mere" $0.5T in toxic assets). Wall Street is not some wholly separate entity from the rest of the economy.
qub1t 7y ago
https://en.wikipedia.org/wiki/Swedish_financial_transaction_tax https://en.wikipedia.org/wiki/Swedish_financial_transaction_... This is some relevant background reading for anyone who thinks Bernie's tax revenue numbers are realistic.
- Macross8299 7y ago
  >The volume of futures trading fell by 98% and the options trading market disappeared You have to wonder what the second-order effects of the options trading market disappearing (or being severely reduced in volume) would be. I know there are some pretty important businesses that depend on options to hedge against commodity prices. Airliners and oil come to mind.
  - ptah 7y ago
    i would say getting rid of this market makes the financial system healthier. 2008 crash could have been avoided with something like this
    - AnimalMuppet 7y ago
      Would it? It wasn't options trading that caused 2008; it was bad home loans.
      - ptah 7y ago
        yes. the derivatives built on top of bad home loans caused the contagion. it would have been close to a non-event if there were no derivatives based on the bad homeloans. https://www.investopedia.com/financial-edge/0210/did-derivatives-cause-the-recession.aspx https://www.investopedia.com/financial-edge/0210/did-derivat... https://www.thebalance.com/role-of-derivatives-in-creating-mortgage-crisis-3970477 https://www.thebalance.com/role-of-derivatives-in-creating-m...
        kenneth 7y ago
        The derivatives were traded in massive blocks, not in high-frequency transactions where fees adding up matters.

jquery 7y ago

As we learned in 2008, taking $2.2 trillion from "Wall Street" will have major effects on "Main Street" (we nearly had a total economic meltdown over Wall Street holding a "mere" $0.5T in toxic assets). Wall Street is not some wholly separate entity from the rest of the economy.

qub1t 7y ago

https://en.wikipedia.org/wiki/Swedish_financial_transaction_tax https://en.wikipedia.org/wiki/Swedish_financial_transaction_... This is some relevant background reading for anyone who thinks Bernie's tax revenue numbers are realistic.

Macross8299 7y ago
>The volume of futures trading fell by 98% and the options trading market disappeared You have to wonder what the second-order effects of the options trading market disappearing (or being severely reduced in volume) would be. I know there are some pretty important businesses that depend on options to hedge against commodity prices. Airliners and oil come to mind.
- ptah 7y ago
  i would say getting rid of this market makes the financial system healthier. 2008 crash could have been avoided with something like this
  - AnimalMuppet 7y ago
    Would it? It wasn't options trading that caused 2008; it was bad home loans.
    - ptah 7y ago
      yes. the derivatives built on top of bad home loans caused the contagion. it would have been close to a non-event if there were no derivatives based on the bad homeloans. https://www.investopedia.com/financial-edge/0210/did-derivatives-cause-the-recession.aspx https://www.investopedia.com/financial-edge/0210/did-derivat... https://www.thebalance.com/role-of-derivatives-in-creating-mortgage-crisis-3970477 https://www.thebalance.com/role-of-derivatives-in-creating-m...
      - kenneth 7y ago
        The derivatives were traded in massive blocks, not in high-frequency transactions where fees adding up matters.