329 HN points
07 Oct 21
“In Hinduism, Shiva is a deity who represents transformation. Through destruction and restoration, Shiva reminds us that endings are beginnings, and that our world is constantly undergoing a cycle of birth, death and rebirth.” – Karen Salmansohn In properly functioning markets, prices move based on order flow within reasonable ranges, the last price being the foundational anchor for the next. Market makers stand between buyers and sellers, smoothing out price and ensuring decent execution in exchange for a small spread. Like all metastable systems, markets sometimes break, with massive order imbalances leading to previously unthinkable prices. Such black swan events happen with a decent enough regularity that we’ve become accustomed to assuming means will be regressed to and life will go on as normal.