Thursday, November 10, 2016

Looking further into the StandardS&L

It is easy when you can enforce color on the traders. One can assume some balancing payments (interest) is 100% enforced, and computing bit error flows becomes much easier.  Everything is assumed balanced to 'integer', if not call the cops.

 I assume payments are enforced, and then I can taker immediate action to balance the loan tree against the deposit tree. The pit boss is building the tree by rarity, but it is a often bunched. At balance,  each node has a bin size of 3 or 4.  A matching node, for deposits, is sustainable if the pit boss can keep that a matching node by dinging the borrowers for an immediate delivery of digits to be dropped into the equivalent deposit bin.

There is no time, here, there is rarity. Under a color limitation, traders limit risk, rarity means large loans, or large deposits.  It really comes out as very infrequent events in the typical flow.


How often are the borrows dinged for a rebalance, when their path length is long. ? Well, they are rare, large. and the tree is rebalanced there, rarely. But the bit error adjustment will be large.  That is time, rarity.


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