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> When they run them through now and get 50% on the dollar, their securitization pools will be creamed. Amazing that mark-to-market is still not restored 10 ye

• dredmorbius 9y ago
  That's not the full story. It's that the trading market is sufficiently thin that even a few hundred units of freshly off-lease vehicles will crash the price. David Gerard makes a similar point of Bitcoin in Attach of the 50 Foot Blockhain -- that "market capitalisation" of crytpocurrencies is complete nonsense, due to market thinness. Rather, you want to look at total transaction volume. A large player can move the market significantly on a very small number of trades. Price, it turns out, is far more like pressure than volume. Punch a large hole in something, and it falls rapidly. Squeeze it to a small point, and you can keep it quite high, but on very small total quantity.
  • davidgerard 9y ago
    > Price, it turns out, is far more like pressure than volume. Or voltage, as we sorta worked out on G+ :-)
    • dredmorbius 9y ago
      Right. Which is a pressure-analogue.