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Amorphous ambiguity


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When I look at the factory orders chart, I think of two things.

 

First, economic activity is incredibly sensitive to decreases in SOMA. This is Doc's thesis that the Bernanke Fed created the crash in the first place. This makes sense in so much as highly levered systems are relatively more sensitive to changes in the credit that functions as their oxygen.

 

Second, economic activity is diminishingly sensitive to increases in SOMA. This is your run-of-the-mill diminishing returns story. I sort of see it the disproportionate impacts of increase/decrease as the highly levered system's expression of its "convexity."

 

In contrast, in a less-levered system, monetary authorities have greater ability to "manage" by "tapping on the breaks," because of differences in the two system's convexity.

 

:unsure:

 

However, I may be having an acid flash.

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When I look at the factory orders chart, I think of two things.

 

First, economic activity is incredibly sensitive to decreases in SOMA. This is Doc's thesis that the Bernanke Fed created the crash in the first place. This makes sense in so much as highly levered systems are relatively more sensitive to changes in the credit that functions as their oxygen.

 

Second, economic activity is diminishingly sensitive to increases in SOMA. This is your run-of-the-mill diminishing returns story. I sort of see it the disproportionate impacts of increase/decrease as the highly levered system's expression of its "convexity."

 

In contrast, in a less-levered system, monetary authorities have greater ability to "manage" by "tapping on the breaks," because of differences in the two system's convexity.

 

:unsure:

 

However, I may be having an acid flash.

 

Jimi...stay away from the acid - that stuff will kill you..

 

post-1110-13148104930402.jpg

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