The Residential Real Estate Crash Index 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.

Strategies & Market Trends : The Residential Real Estate Crash Index

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: MulhollandDrive who wrote (149365)	9/23/2008 12:07:53 PM
From: GraceZ	Read Replies (1) of 306849

he said he's trying to establish a MECHANISM to CREATE value... earth to paulson.... that mechanism is called a free market Even free markets in securities have market makers, people whose job it is to provide price continuity in times where there is an unreasonable spread between what sellers will accept and buyers will offer. The market maker is required to step up and take the other side in the event of no public buyer/seller on the other side, required to split the difference between the B/A once an hour in the absence of a market participant on the other side of the trade. This kind of system was never established in the securitized debt market, they used an auction system not a market maker system. That market has always been a cross between buyers and sellers, similar to what you see in extended trading in equities trading (where the greatest degree of discontinuity exists in the equities markets). I think what the Federal government wants to provide is a semblance of that market maker function.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next