On the Tobin TaxAugust 27, 2009 Tim WorstallFinance6 CommentsRitchie and Larry are both in favour. Clearly it\’s insane then. We\’re in a credit crunch, liquidity has dried up. Thus they decide to tax liquidity. Friggin\’ genius or what? previousThe Ted and Gerry shownextWhat? Say it isn\’t so! 6 thoughts on “On the Tobin Tax” Luis Enrique August 27, 2009 at 1:05 pm Are we still in a liquidity crisis? I didn’t think so. I thought there was govt. guaranteed liquidity all over the shop. A Tobin Tax could always be suspending, during a crisis, if you think it matters (I don’t know, haven’t thought / read much about it). What kind of transaction would a Tobin Tax tax? Would it tax inter-bank lending? I wouldn’t tax lending of all varieties would it? (perhaps it would; I’m know nothing about the details). Perhaps if creating, acquiring, and hedging mortgage backed securities had been a little more expensive, we’d be in less bother now? Mark Wadsworth August 27, 2009 at 2:11 pm Tobin Tax is a daft idea, in practice as much as in principle. If one country did it, people would just go somewhere else. Current August 27, 2009 at 2:17 pm Ah yes, but is Will Hutton in favour? That would seal the deal. Luis Enrique August 27, 2009 at 2:23 pm I guess we’d get “offshore transaction havens” – although Richie tells us that international co-ordination isn’t needed. Tim adds: The eurobond markets are in London precisely because the US imposed taxes which London did not…. MARK T August 28, 2009 at 3:10 pm AIG financial products had in place all the bonus restrictions Sarko is suggesting. THe problem wasn’t the incentives within AIGFP, it was the fact that AIGFP existed at all. The role of regulators should be to find hidden leverage and make sure it is properly priced (assuming the banks don’t do it). HIgh bonuses should be a clue, but hen go for the institution not the individual. Pingback: OK, The Tobin Tax passes that test then. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.