Back to top

Real Time Insight

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

 

Big news! -- Passage of the “Tobin Tax” by the European Union (EU). 

EU finance ministers cleared the way for 11 members to introduce a trading tax.  This tax can raise billions in euros from the financial services industry and deter speculation, particularly the high-frequency trading type.

The U.K., Europe's leading financial center, decided not to adopt the new levy and abstained, along with bank center Luxembourg, the Czech Republic and Malta.  Further, U.K. PM David Cameron now seeks to introduce a referendum on staying in the EU.

John Keynes once said,

“The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.” 

The defunct economist this time around?

Yale Professor and Nobel Laureate James Tobin, who died in 2002.

According to the NY Times, proposed legislation would impose a tax of 0.1% on the value of all stock and bond trades, and of 0.01% on all derivatives trades. That could raise €57 billion  ($74B) annually, or about 0.5% of EU output, if it applied across the bloc.

Fewer than half expect to participate.  Without revenue from the U.K., the amount should be significantly less.  Trading taxes more likely collect €37 billion.

Worries? 

Tobin Taxes will drive investors away and slow Europe’s GDP growth. It risks opening divisions in the EU just as the euro zone looks to cooperate more closely on fiscal, money, and bank policy to build stronger foundations for the euro.

What do you think?  Is this tax a good idea whose time has finally come? Or a bad idea at a bad time for the EU?

 

Zacks Releases Their 7 Best Stocks for May, 2014

These 7 were hand-picked from the list of 220 Zacks Rank #1 Strong Buys with earnings estimate revisions that are sweeping upward. Their stock prices are expected to rise sooner than the others.

Today, this Special Report is available to new Zacks.com visitors free of charge.

Close This Panel X

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%