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Earl wrote:
> I think Cramer's right on this one. The specialist and market
> maker systems are most often justified because they are alleged to
> deliver market liquidity not available in a pure auction market. I
> suspect this will be proven to be another brokerage industry hokum.
So what will be the result of this? More and more volatility and
illiquidity caused by the MM's not wanting the risk, causing more and
more MM's to refuse to take the risk, causing more and more
volatility and illiquidity, ... until the whole thing blows up? If
so, *how* is it likely to blow up? Does the market just get so
insane that nobody with any sense trades it, and it implodes in on
itself? (Although with today's bubble mania, I think there will be a
large supply of investors/traders with no sense for quite a while...)
Does this cause the prices to crash at some point, simply because
nobody will touch it? I think crashing prices is what it will take
to shake out most of the e-trading fry cooks and taxi drivers.
Gary
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