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This assumption breaks down for most financial assets. Both parties still think that they are gaining value, but one of them has to be wrong.
by drabiega 9y ago
This assumption breaks down for most financial assets. Both parties still think that they are gaining value, but one of them has to be wrong.
- mattmcknight 9y agoThis is completely wrong. I sell stocks because I need cash. I make a loan because someone else needs cash. Liquidity preferences matter, volatility preferences matter, both parties can gain value.