Prognosis and Kurtosis

Wall Street works with a sense of entitlement. Financiers work real hard to make it so reward can be had without risk, but that does not mean the risk has been diminished. It has been shifted, transferred, or in the modern parlance of people who drive risk-transfer vehicles, risk is swapped until, over time, somebody has to take it (assume it), but it’s not going to be “them.”

The sense of entitlement derives from prior knowledge of the probable risk. Wall Street knows what the outcome will be because they network the externalities to “reduce the risk.” Being referred to as reduced, the risk surprisingly shows up (yielding a default-risk premium) and the prognosis interprets the transaction (the distribution of the reward in late order) as being ontologically derived. This serves to exculpate the risk-value, and because it “just happens” over and over again, there is a sense of entitlement, which interprets what transacts as the “let it be” property of free-market mechanics.

If the economy is sick, what’s wrong with it? What is not normal about it? What’s the natural distribution?

Put two charts together: income class and distribution of income over time. The measurable space between the variables is the retributive value–it is “the risk” that must be managed. If the distribution is not normal, what is the prognosis. Is that normal?

Keep in mind what a normal distribution looks like. Superimposing income distribution over time against a normal-looking curve, there is a measurable space. To what do we attribute the value that renders an interpretation and transacts (actualizes) the occupation of that space over time?

(What is the natural interpretation when, for example, a little birdie shows up at a Bernie Sanders rally. Naturally, there is a sense of nature’s endorsement. However, that’s just a coincidence, isn’t it? Interpreting it to mean that nature can somehow sense the propriety of a normal distribution, transacting the interpretation going forward, is nothing but delusional–skewed–right?

So, what is the probability the little birdie would occupy that space at that time?)

We have the example of what a normal distribution looks like, empirically derived from nature. So, what’s the difference? …

Vote For Bernie Sanders!

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About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
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