Magical multiplier

Moral: Wherein we get out of the pause mode and start the long trek to founding a better normative view of economics.

Yes, and we will be mathematical (in our own time and by our own means). First, though, we have to establish the basics of the discourse.

So, these three images start to tell the story at its inception. Which is? How the heck does this magical multiple (cheshire state - wild dreams) come about? Why is it allowed? Then, many questions arise.

But, to address the last question, first, we only have to say that the history of markets (and the capitalistic devolution of such - as in, if you have to ask, ca-pital-sino) is an age-old thing (for now, search results on markets, this blog). And, we will cover that topic at the necessary lengths.

Now, about the multiples that occur in finance and economics, they all relate to near zero (see it in this and the associated blogs) and to the emergence of the chimera (ah, that which sucks values from the pockets of the hapless to those who have been able to fleece the public (by shell games, for one) for millennia).

Of course, we have to weigh in real soon on dark pools (especially, their motivations). See if you can guess how we are going to explain these machinations (yes, implicitly there, in the following images).

First, we need some overview and discussion
of the elements being used.

Now, let's consider a real simple case to see the effect.
(Hint: on the bottom right, note the predominance of the brownish)

Then, consider one permutation of many. 

There is more on the topic on the way, including an essay (PDF) that will pull the fundamental aspects together. From that, we will cover a few of the variants.

Then (at some future point after a proper unfolding of the theme), we will start to describe how to make the problems (ah, so many of these problems are, folks, due the brains that been allowed to proliferate schemes - made-off was a crook - there are so many unfounded (unrecognized) ploys of this nature that it could be truly disheartening if the nature of these were not so obvious -- let's shed a little light and see what we can do) amenable to being understood. Perhaps, then, we could talk possibilities of choice and such.

Remarks:  Modified: 06/01/2015

03/15/2015 -- We have to start this way since the infatuation with STEMish thoughts runs deep (without the proper foundation, folks - albeit, that operationally that thrust looks to be sound). Too, the computer's (cloud'd or otherwise) appeal is part of the package, as it ought to be. However, the present state has many troublesome aspects. Now, for the Piketty picker-oners, what I am alluding to here is what he ought to have used -- we'll get there -- Minsky, and many others, hinted at things about which we ought to have more concern. ... My bailiwick is computational (the gamut) -- we need not fear technology, any more than we may have had concerns about our bros - all the way back to Cain and Abel and before.

03/16/2015 -- Updated the images. Let them eat cake.

03/17/2015 -- Dogs of the Dow: Market Cap table, Most active. Beyond the wildest dream.

03/23/2015 -- Pew Research's reports will be useful: Only upper-income families have made wealth gains in recent decades. In some of the responses to comments, one author expresses disbelief in the Fed's influence. Well, we can work on helping clarify that (by more than griping about the addicts). Our research deals, in part, with how many simple folk get to experience, and enjoy, the book-based wealth that their financial reports offer them. That is, that which is beyond Social Security (but, being sensitive to take-backs as we see, recently, happening with retirees being informed that their pension is being cut). From my experience, it is a small percentage (comparatively). The one fact of the upper crust? They have more protection which we can enumerate and illustrate.

05/08/2015 -- The magical multiplier in action.

06/01/2015 -- Dampening the magical multiplier.