[Newsbot]

Title: Canada wins key battle against bank tax
Category: World
Posted By: wildrosegirl
Date: 2010-06-05 08:01:54
Canadian

[Arctic_Menace]

Good.

[Thanos]

I dunno. A nice insurance fund to protect the rest of us from when the financial geniuses (aka, the self-proclaimed "adults" in the room) next tank out the entire world economy would have been nice. I can see the Canadian perspective in that our banks weren't fuck-up central the way the US* ones were so this sort of tax really isn't necessary, but still. An extra pillow to cushion the fall might not have been such a bad idea.

* I can already visualize how the Americans will manage this one. The banks will collect the tax and the banks will be allowed to manage the tax, which means it isn't a tax at all but just another transaction fee. By the government, once again, leaving these rich-boy assholes up to their own infernal devices, all the so-called "tax" collected will probably end up being paid out as executive bonuses and as financial backing for the next generation of mortgage/insurance scams. And when the smart people then trigger the next great recession they'll just go back begging to the government for rescue because, whoops, sorry, we spent all the insurance money on new rims for the BMW, lots and lots of cocaine, and new tits for our fake-blonde all-American trophy wives. Sorry for fooling you again, Uncle Sucker Sam.

[andyt]

The tax doesn't address the moral hazard question - ie losses would still be socialized. I guess I agree with Harper that tighter regulations are the way to go, and put limits on the risks banks are allowed to take. But what I worry is that if there is no agreement, in the end no country will do anything, nothing will change. At least there seemed to be pretty strong agreement for this tax among the G20, and they would have been doing something.