Tuesday, December 3, 2019

Corporations don't need stock, they need sandbox S/L

Otherwise interested investors can get an S/L, run by the corporation. The corporation takes a third color contract to deliver some percentage to the market making account. The extra liquidity replaces dividends, but becomes asynchronous, adaptable. Account holders get an automatic  futures market by altering S/L.

I think this is minimum. The corporate board has direct access to a liquidity market, they can set the equivalent of dividends.  Start ups contract to pull from the market risk account. I think the only thing needed is secure trading pit, contracts guaranteed, standard pit.

Sandbox is removing a redundancy, don't need to separate equity and debt any more. Simplifies regulation a bunch, minimum spanning tree, optimally congested. Transaction costs set to zero in the model, and in practice.  Slow as wee are, the actual costs of trading s small indeed.  These pit bosses make take a half second to sort and scale  batch of a thousand trades.  It is still serial, it is still primitive, just slightly better than an abacus.

The debt system here is transaction cost zero, and the corporation itself, via the actions of the board should match actual logistics, and the algebra works.  It is possible to agglomerate inventory on a large scale, but keeping the disturbance below the bound.  Don't bunch up the trucks, predict truck congestion. That is Coase extended to flow. Bounded conditions means all exits priceable.

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