Mainstream Politics and Economics Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Mainstream Politics and Economics

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: No Mo Mo who wrote (19899)	7/19/2012 3:07:24 PM
From: LLCF	1 Recommendation Read Replies (2) of 85487

Every psychologist in the country is cringing.... "*you people":* *http://www.siliconinvestor.com/readmsg.aspx?msgid=28277998* <It's not envy. It's math...and concern for my country> Somehow a lot of Rwingnutz don't understand how many of the wealthy in this country really don't mind paying extra. They assume it's jealousy or something. Really weird. Gates & Buffet give them their opinions and they howl and squeel that they are traitors or something... Where are Buffett's Caymen accounts???? When in NYC near the beginning of my career these decision points came quickly on WS. The first big year I had some folks I knew steered me to Richy; "an awesome accountant that knew all the tricks." Some of them were moving to Jersey they announced for the lower tax rates, some not. That year turned out to be an intersting bi-furcation point between those of my peers that used Richy and those who used another "New Yorker" who wasn't so "agrressive". Long story short Richy recommended some not technically (yet) illegal strategies and some that did appear to be against the spirit of the laws but as of yet were "not tested in court" to get the taxes down to what I thought was obscene levels. Now Romney seems to think those levels are fine... lol.. Here's a personal example I know about: Some folks did and some didn't... "ACE" Greenberg himself (my understanding) from Bear Sterns along with all sorts of other executives from that firm would come into one of the crowds I traded in every December to put a MASSIVE play on in the options and stocks of Phillip Morris. PM payed a rather large dividend, WS types looked for large dividend stocks that payed near the turn of the year. The play was that they would short PM stock but BUY the synthetic stock (buy call sell put) in the options, leaving them completely hedged. They would give the other side of the trade a penny or so but HUGE numbers of times... our firm repeatedly had to ask the exchange to be excused from the "position limit" rules to accomidate these guys. Why did they do it??? Well, they would pay out the dividend in December and deduct is from their taxes and then make the money back in January when the calls and puts expired... they "rolled" their taxes from year to year and didnt pay!!!!!!! Then next year they did it again... sure, they would have to eventually pay, theoretically, but could keep the money and earn interest (back then big bucks). Illegal? Well, technically??? Actually at this time the IRS had ruled (due to the "tax straddles" used on the Chicago board of trade a decade earlier) that trades done soley for tax purpose and no economic risk were illegal... but it hadn't (I hear) been tested in court in the case of dividends... LOL... I reported the activity to the exchange every year... their position was the exchange was getting their fees... soooo..... call the SEC. I called the SEC for a couple years in a row as well before I left the floor... they listened... probably didn't get it... and said they would check into it. Some traders thought I was wasting my time and should just join in, others agreed and thought these A-holes were ruining the business for everyone. Sound familiar??? Interesting to know which group Romney was in!! The funny thing is lots' of folks do this stuff, but only a complete buffoon would think he could get away running for public office with a history like that!! This guy made his choices and has been doing it sooooo long he may really not get it... IF HE MAKES IT TO THE CONVENTION ITS SIMPLY A TESTIMONY TO THE STUPIDITY AND/OR THE LACK OF MORALITY OF THE REPUBLICAN PARY!! Period. DAK

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next