Originally, contango was defined as a fee paid by a stock buyer to the seller in order to postpone the delivery of the stock to a future date.[6] The etymology of the word is not clear, but is assumed to be a corruption or mis-pronunciation of the word "continueFrom MarketsWiki. This should be corrected, the eytomology is from entangle:
- tangle
- mid-14c., nasalized variant of tagilen "to involve in a difficult situation, entangle," from a Scandinavian source (cf. dialectal Swed. taggla "to disorder," O.N. þongull "seaweed"). In reference to material things, from c.1500. The noun is first recorded 1610s, "a tangled condition."
Digging even deeper, the economy is adjusting the spectral lines on the production spectral curve, these spectral lines need a 15% overlap. In the digital world this is a phase lock system, and is generating the 'rate counters' for supply delivery. The economy wants to keep the Gibbs phenomena separated. (Remember Gibbs, Paul Samuelson's good friend?)
Maximizing the Gibbs separation will minimize traffic congestion, that thing that happens to arrival times when the commuter and the supply truck end up together on a congested street. Or when the five year bond trader and the seven year bond trader target the same customer.
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