Is your tail fat? “Fat tail” is insider market term that comes originally from mathematical modeling. It refers to an anomalous event that skews the data and produces a funny looking chart. In the market it’s one of those very real possibilities that are completely ignored until they happen. Like the complete break down of multiple governments in places that have oil and such.
Tunisia wasn’t a big deal in the scheme of the world and it’s probably not what is really driving the popular revolt in Egypt and other countries in the Mideast. What all these countries have in common is grinding poverty among more than half the population who live on less than $2 a day. This translates into not being able to afford food when the price doubles or triples.
So called developing countries are scrambling to secure basic food stuffs and are announcing new programs to distribute food and cooking oil in order to avoid being the next domino to fall.
The so called developed world is not exempt from the “fat tail”. The NYSE dropped hard today and commodities were up sharply. Oil in the European markets is already closing in on $100, that’s $12 above West Texas crude today. Gold jumped $25 as investors are anticipate a surge to safe investments.
This will all translate into higher food and fuel prices that were already being pressured by market speculators. And really that’s all that is going on here is speculation and market manipulation by unscrupulous Wall Street parasites. They sucked three trillion out of the pension funds during the last crisis and they’re back for more.
People will die, governments will fall and millions will suffer to transfer more of the world’s wealth to a handful of useless capitalists in the name of “free markets”. In case you haven’t guessed there is nothing free about the markets, they cost us dearly. If you happen to live on $2 a day in 3rd world country and food costs $3 you could die. If you’re a 99’r in the US and are living on food stamps and nothing else then you’re not much better off here as the price of food surges.
If the Republicans are successful in cutting off all government spending and end food stamps, well you get the idea. But the real danger is that they will manage to cripple the economy to the point where it simply collapses and food stamps aren‘t even available. I’m not kidding about the canned goods. www.prairie2.com