Wednesday, August 17, 2011

Market Tax and the Eurozone Crisis




Guardian: Reports European Markets have not reacted well to the Franco - German plan for a tax on every time a share is sold or bought, the same plan would affect the currency market. The article notes at morning trading the FTSE -250 fell by 6%. The Markets should not worry, its not going to happen, there will be no common tax within the Eurozone as those Eurozone Countries would worry that those EU Counties outside the Euro would benefit tax wise, business would rush to these Countries and still stay within the EU. The Plan is political smoke during the August silly season, its get the press off the back of German and French leaders. The major problem is European DEBT, you can play political games but at the end of the day it is an illusion. Either Germany supports a Euro Bond and takes the bailout risk or the Euro is on its way OUT, its just a matter of time folks.

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