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To: bruinbirdman

But that’s wholesale-retail thing. Retailer provides a “utility” or “value” for his markup.

With stocks, it is usually all “retail”. Bob buys for $10 from Jack. Bob sells to John for $10.20. John sells tomorrow for $10.30 to Joe. Joe sells to Jack at noon for $10.10.

At each stage, house takes a cut. what is the benefit to society? Liquidity? Price discovery? Wasn’t it Karl Denniger who noted after Chilean earthquake, copper futures went up, even no disruption to the mines. Speculation—what good is it?

parsy, who would prefer boring markets


25 posted on 03/03/2010 6:45:25 PM PST by parsifal (Abatis: Rubbish in front of a fort, to prevent the rubbish outside from molesting the rubbish inside)
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To: parsifal
"parsy, who would prefer boring markets"

Birdman prefers The Obammunist cut taxes.

yitbos

36 posted on 03/03/2010 7:19:06 PM PST by bruinbirdman ("Those who control language control minds.")
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