OH, I just KNEW IT!!!
Karl Denninger is on to them!!!
Price discovery is what everything else in the capital markets devolves down into. Price discovery is the short term for haggling - negotiation, auctions, disagreement over value. One party is later proved right, and the other proved wrong. There is no job creation, innovation or industry that is put forward by price discovery. However, without price discovery Capital Formation becomes extremely difficult in any sort of public market, since there is no means available to know if you're forming capital at a reasonable rate of return other than by the experiences of others. It is therefore a necessary function and a social good.
But price discovery requires public markets. That is, it requires exposition of bid, offer and size where we can all see it. In addition a public market must demand that the participants be able to clear the trades they put on - that is, that if they claim they intend to buy or sell something, they have the economic power (or ability to acquire the product or service to be sold or bought) prior to entering into the transaction and for the entire period that the position remains open.
Here is the link to the FULL STORY!!!
http://market-ticker.org/akcs-www?post=174776Plus, here is the link to the NEW YORK TIMES Story!!!
http://www.nytimes.com/2010/12/12/business/12advantage.html?pagewanted=1&_r=1&hpIf this doesn't make you mad, then you are just TOTALLY STUPID!!!
Squeeky Fromm
Girl Reporter
