30
Is there a practical way to implement helicopter money, instead of the current way of (extremely inefficiently) trickling down the money through bond markets?
110
Let's say I'm a market maker. Assuming there's no way for me to hedge my position when my quote is taken, how do I get out of my position when someone hit my quote?
The standard way to do this is to "lean" on your position. If my estimated price of something is $100 and someone bought against me, then I'll adjust my estimated price to something like $101. The more position I'm holding right now, the more I adjust. When the adjusted price moves too far away from my quotes, I pull my quote back. That's why when you trade against market makers, you might get a worse price for your next order.
It's kind of depressing that the determining factor of how well you perform at seemingly disconnected fields is actually just general intelligence, which is mostly set in stone during our genetic lottery at birth. Since we don't work for it, it's unfair and underserving for people who won the lottery to have the ability to outperform in liteterally every skills.