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View Diary: Explosive Bloomberg Editorial: Bank Profits are "almost entirely" Taxpayer Money (125 comments)

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  •  European banks (2+ / 0-)
    Recommended by:
    wader, 3goldens

    and in particular German ones are far more leveraged than US banks.  US regulations right now are tougher than those that exist there with respect to risk capital.

    I like the Tobin tax - but the basic assumption that the Europeans are better at regulating banks is certainly not true.  

    The bitter truth of deep inequality has been disguised by an era of cheap imported goods and the anyone-can-make-it celebrity myth - Polly Toynbee

    by fladem on Fri Feb 22, 2013 at 07:37:42 AM PST

    [ Parent ]

    •  Doesn't really matter (1+ / 0-)
      Recommended by:
      unfangus

      The tax serves a social purpose by discouraging speculation and an economic purpose by redistributing excessive rents that gravitate into the finance sector to more productive government use.  The standard objections to the tax (at least for public purposes) is that it will drive business to other venues.  By precisely matching the terms of the other major venue, we can capture the rents with no potential competitive downside.  That defuses the main "selling" point of the objectors.

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