I guess our disagreement is based on the difference in perspectives.
I have been for a long time, and still am a value investor, who goes in for the long haul. However, I have done enough day trading, to see and experience some of advantages and disadvantages of the various parties involved, IMO ofcourse.
Couple of statements you made , I respectfully would disagree with you on those.
If there would have been no MM's, the process of capital formulation would not have stopped. We would have somebody else there to provide this service. Trust me, the beauty of the capitalistic system is its ability to fill up these vaccums faster then your eye can see it.
Secondly, Remember why SOES was created in the first place-- to improve liquidity. something MM's should have been doing all along, like you stated.
Lastly, let me make the point I am emphasizing, each person, is trying to make a buck in this game. There is no fairness or unfairness to anything. Each party , the MM, the soes trader ( Not a Bandit) , and the retail investors have some advantages and some disadvantages. Some more then the other.
Rather then to nitpik, into an academic exercise of disagreement, I beleive one should simply acknowledge each party's weaknesses or strengths. Rather then to point fingers, putting blame on one party or another in this game , we call trading--------ooops ---investing .
Looking Forward----- |
