Friday, July 24, 2015

winterspeak — The vector for financial contagion is hedge funds

This article sums up exactly my experiences at DE Shaw during the ruble default/LTCM melt down in 1998….
Running for the door, any door, cutting a door, jumping out the windows.….

1 comment:

NeilW said...

The problem here is that the article doesn't explain who they were selling them *to*.

There simply can't be homogeneity or you can't have a market. There would be no buyers.

Now if the buyers get one up on the sellers, why is that a problem? If the panic sellers go bust, why is that a problem?

None of this secondary market churn affects the primary market. And it really doesn't affect the primary market if there are good investment banks