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Banks Should Get Windfall Profits Tax

A windfall profits tax should be applied on banks when it comes to the debate on how to curb banks’ excessive profits, said Kirby Daley from Newedge Group.

Appearing on CNBC Wednesday, the strategist brought up a concept by his client to dealing with the big bonuses and compensations of financials.

“If we are so concerned about the bonuses that are being paid and compensation being at levels that it was back in 2007, why not a windfall profits tax on these banks?”, questioned Daley.

But such a move would not get government support. According to Daley, financials having big bucks is exactly what the government wants.

“This is what I have called many times, the biggest heist in the history of the world: the transfer of money from the public to the banks to bolster them for the next round of write-downs," said Daley. "The government is a major player in this. They want the banks to have these profits. It’s all part of the game.”

On a separate note, the strategist said he expects equity markets to see a pull-back of 20%- 30% before the middle of next year due to weak economic data and poor earnings.

“Choppiness is in the cards for now, and we will be setting up for a slow drip back down.”