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Yes, that and improving efficiency of markets, the go to arguments for wall Street types. I used to be a sell-side trader, allocation of capital was the last th

Yes, that and improving efficiency of markets, the go to arguments for wall Street types. I used to be a sell-side trader, allocation of capital was the last thing on our minds. It might add value to the economy in the long run but I'm pretty sure it's way too crowded now with little marginal benefit. If we took the underlying technology and man hours used to make something more useful I think the world would be better off. Something is seriously twisted in its current state

roenxi 8y ago
> I used to be a sell-side trader, allocation of capital was the last thing on our minds. Bit risky telling someone what their job is, but nevertheless I'd suggest you missed the forest for the trees. The profitability of a trading firm is directly linked to their ability to allocate capital in a way the market likes, and someone with great information thinks that hiring lots of smart people achieves their goals more effectively than hiring small numbers of smart people. > Something is seriously twisted in its current state 100%, but it isn't the concentration of smart people in finance. That is a good thing - better more scheming bankers than lawyers. Free market capitalism gives capitalists perfect freedom to operate in the sliver of the Venn diagram that connects what is possible with what customers will pay for. If they step outside that, they go bust. If there is a problem is probably that the US government didn't let enough companies go bankrupt in the aftermath of the 2008 crisis, and the same idiots that were in charge then are still in charge, or their protegees.
- ackbar03 8y ago
  >Bit risky telling someone what their job is ? Because...?
AznHisoka 8y ago
Everyone pisses on quants/traders but the market would be much less liquid if they didnt exist. You couldn’t easily take out millions of dollars out, if there were no eager buyers on the other end. Yes, their intentions are purely greed, but you can’t have liquidity without the arbitragers, traders and speculators.

roenxi 8y ago

> I used to be a sell-side trader, allocation of capital was the last thing on our minds. Bit risky telling someone what their job is, but nevertheless I'd suggest you missed the forest for the trees. The profitability of a trading firm is directly linked to their ability to allocate capital in a way the market likes, and someone with great information thinks that hiring lots of smart people achieves their goals more effectively than hiring small numbers of smart people. > Something is seriously twisted in its current state 100%, but it isn't the concentration of smart people in finance. That is a good thing - better more scheming bankers than lawyers. Free market capitalism gives capitalists perfect freedom to operate in the sliver of the Venn diagram that connects what is possible with what customers will pay for. If they step outside that, they go bust. If there is a problem is probably that the US government didn't let enough companies go bankrupt in the aftermath of the 2008 crisis, and the same idiots that were in charge then are still in charge, or their protegees.

ackbar03 8y ago
>Bit risky telling someone what their job is ? Because...?

AznHisoka 8y ago

Everyone pisses on quants/traders but the market would be much less liquid if they didnt exist. You couldn’t easily take out millions of dollars out, if there were no eager buyers on the other end. Yes, their intentions are purely greed, but you can’t have liquidity without the arbitragers, traders and speculators.