bostonbubble.com

[john p]

I've always talked about the financial bubbles like metamorphic sets of fundamental laws that change state, refract and adapt. For instance, when the FED significantly lowered rates, it changed the fundamentals of the market, it was like it heated up the housing prices and they rose, kind of like how yeast rises the bread. Lots of energy is wasted in changing states. I have always liked to study the M3 growth and the inverted pyramid of liquidy. I feel that the explosion of the medium (money) has dissolved fundamental laws by changing fundamental properties, and we are now digesting and farting out that like a dog that got into the food bag and over ate. That wasted energy of being a lazy, bloated coach potato that doesn't want to work is our current state. We are fat and lazy but we can't find the energy to work. We didn't get trickle down economics because the expansion of the derivatives (see link below) didn't allow the water vapor to transform into the rain drops that would have created the trickle down economics. We never got the internal pressure because of the expanse of credit cards, HELOC's, i.e. the expansion of the M3 (the flood of the medium created entropy, and now we're in a Bread and Circus drunk delusion kind of like a food coma because we're digesting all of this M3. People acted like they were stoned (irrational exuberance) because they were passing through a stimulant. If we're in a food coma, we don't need to eat more, we need to burn it off and get back to a balance metabolism where we can optimize our work and lives. Metabolism is regulated by self governance, industrious values that bear fruit and protect us.

http://upload.wikimedia.org/wikipedia/commons/0/08/The_inverted_pyramid_of_global_liquidity.gif

http://en.wikipedia.org/wiki/File:Components_of_the_United_States_money_supply2.svg

Entrophy

http://en.wikipedia.org/wiki/Entropy

http://www.engineeringtoolbox.com/steam-entropy-d_99.html

Read the cosmological definition of entropy (#3 below) and think about the globilization of our economy

http://dictionary.reference.com/browse/entropy



http://wright.nasa.gov/airplane/entropy.html

Think about the trade deficit and consider the debt like waste piling up:

http://fig.cox.miami.edu/Faculty/Dana/entropy.jpg


http://www.gold-eagle.com/editorials_05/conrad060105.html

http://www.pharmpedia.com/Tablet:Formulation_of_tablets/Disintegrants

http://perso.univ-rennes1.fr/jerome.crassous/momentum.phtml

http://www.ceri.memphis.edu/people/ellis/3ddef/introduction.html

read point #4 and think about how we are digesting the M3 money supply.

http://www.chronos.msu.ru/EREPORTS/savchenko_entropy/savchenko_entropy.html

http://dms.irb.hr/tutorial/tut_dtrees.php

http://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=1808343

http://arxiv.org/ftp/arxiv/papers/0810/0810.3525.pdf