Rough Beast

Rough Beast
Grifo Mecanico - Diego Mazzeo

Thursday, August 08, 2013

Rich Devils

The conceit that rich people are better at making guesses about the future is hindsight bias. The stochastic process of making some unlucky guessers rich and some lucky guessers poor depends on many factors over history. Rich people stay rich by serving the Rough B3aST whether that is their intention or not. Lucifer does not favor the ideas of any class except the population that furthers the ends of her majesty. Connectivity and Cognitive Surplus have always been on the agenda but the unfair returns are not uniformly distributed because small changes in initial conditions matter so much. Markets, not investors, are the winners as dissipative structures, far from thermodynamic equilibrium emerge from markets not from individual winners that can be predicted. Market forecasts are different from Market predictions.

Gini Coefficient = A/(A+B)
What is generally the case is that crowding of wealth toward the right hand side of the 80/20 distribution to the end that we now have, or are heading toward the 90/0.1 Gini Curve bending. Shaking down a smaller population of wealthy individuals beats shaking down a large number of individuals. Quants corner returns because they are faithful servants of and dependent on Rough B3aST; the 'made' side of the *Technium's made/born dual.

*Kevin Kelly shout out

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