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by denim_chicken
4006 days ago
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> it is cheaper and easier to get in more markets than ever before and the margins are as low as they have ever been on providing it High enough that the firms are at least receiving a normal profit. And given the opportunity cost that all these smart people incur by working in this industry, this normal profit is rather big, and no doubt that the extraction of this normal profit has non-neglible deleterious effects on the economy. |
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As did the system of pit traders that it replaced. The margins and accompanied spreads are lower now than previously.
> no doubt that the extraction of this normal profit has non-neglible deleterious effects on the economy
As with any market activity, it needs to be compared with the benefits it provides.