Sunday, July 26, 2020

So it really is a TOE

Hidden Markov nets work both for physics and finance portfolio management. It tells us how physics distributed charge, spin and magnetism. And it tells us how to hedge a portfolio of investments. Thus it also informs us on economies of scale and skew problems in the USA government system. It tells us how much damage the Fed Taxes are on the middle class (market sizing uncetrainty for economies of scale). It reshapes the science of economics, opening up the analysis of all transactions, including government. It handles the Lucas criteria.  And hidden Markov theory has been around, and is already popular regardless of anything I write about. It tells us how trading pits self organize, setting the stage for sandbox.

The same theory explains compounding interest charges as a balancing tool for a complete depreciation sequence in some sector. It correctly does not use time nor space.

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