Quote:
Originally posted by bobnat
Pittsburgh,
This has turned into a very fascinating and informative thread. I hope you don't mind some more questions.
You say that the MM needs time to offset their aggregrate positions in the IB. So, does this mean that no matter what the bet and size, there is always a bank somewhere willing to take the other side? This concept really fascinates me for some reason. Maybe because it hints at the fact that there are so many ways to view the markets, from so many time frames.
Nat
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You own a house. A sewage treatmant plant goes in or something like a truck stop goes in next to you. That is going to change the risk involved when you decide to sell your house.
When you want to sell, I will still gladly buy it from you, but for 40% of what you paid for it. It is still worth something, but the risks have changed dramatically in the future.