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The thing about traders and intermediaries is that they take a cut of a trade that might not have taken place without them, which remunerates bringing the buyer and the seller together at conditions acceptable to both, i.e. by taking some risks and bridging the gap in the needs of the two parties.

So it's not a cost, it's the remuneration of a very real service that allows for the value generated by the trade to be realised.

As HiD pointed out, buyers and sellers are under no obligation to use these intermediaries. They must find them convenient, somehow.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Nov 11th, 2006 at 06:46:55 AM EST
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