Hang up and dial again?
Five years after averting a complete financial collapse of capitalism, pop media’s assessment is to describe a disconnect between Wall Street and “the real economy.”
Alluding to what is “real” is the Objectivism that dominates the philosophy of risk. The analysis suggests the economy cannot be comprehended by the ignorant masses with any sense of propriety since, objectively, risk is being managed in dark markets. Banked in the shadows, reality is brought to light only in time of crises, which is the forward price timed to maturity and backward dated (“t,T = T-t”) in a macro-risk dimension.
Wall Street IS the real economy. It is not disconnected, it is badly connected. The liability is not limited by this false, structural assessment of “being” disconnected from objective reality.
Despite being constantly shifted to the future, the risk is here, it is now.
It’s time to hang up and dial the operator–the Sovereign. It is you, now, in all the futures.
The “disconnect” being described is the futures/forward price, “F(t,T).”
It is possible to deliver your self forward and book the value now.
It is possible to get a “good” connection.