A Bad Connection

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.

Advertisements

About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
This entry was posted in Political-Economy and Philosophy and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.