It's not a silver bullet solution (more of a sticking plaster) but it would raise a lot of cash for something if it was implemented.
The main problems as I understand it are to do with the necessity for global adoption.
The US would need to opt in as would financial centrers in the east (and middle east) before it would be feasible.
Even a small Tobin tax would however raise pretty huge sums.
Who gets this cash and how its dispersed would be another contentious issue.
This plan would not begin to address the societal disconnect between the world of high finance and the real world but it would be one way of tweaking the current system to provide some additional potential benefits.
Despite the face validity of the idea (bankers make an easy target at the moment) it's worth noting that many banks would pass these costs on to customers where possible so it would turn into a rather broader tax than advertised.
Something with legs or hokum ?
I'd be interested to know what anyone else thinks ?
A summary article and incipient discussion starting over at the guardian
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