Moving Too Fast?

Equity values went into a correction and then quickly moved back up.

Many analysts say the recovery is too fast but do not attribute it to income inequality, with the value being stored in the stock market, accumulated at record levels.

Hyper-acceleration of the recovery phase indicates an accelerated risk dimension, which showed up in the VIX.

The VIX trade is a derivative financial product and it was being used to derive free money, at no risk. It was free until the accumulative risk actualized on demand. Suddenly, a 2% treasury yield looked good, but it’s not that good!

The retrace occurred at a higher velocity — covering more space over time, which is also an expression of density. Stock prices are still dense with accumulated value because it is a safe place to store the value with a yield that derives from the risk dimension — its density in space over time.

The accelerated occupation of space over time — the new normal — is what risk analysts find troubling. Does that mean a crisis can occur so suddenly that we can have a Great Depression, for example, without having the means to correct for it? At that point, the risk is so dense it realizes an inescapable dimension. Nature takes its course, which would be the authentic expression of its natural identity by default.

In the event of a sudden collapse there would need to be a way to track who really owns what, and it just happens to be that we now have the “blockchain” algorithm to do that, which is described as “identity management.”

About griffithlighton

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