I recently finished reading: The author writes that 6.6% of U.S. American residents will find themselves at some point in their life incarcerated, about 20 million people. A big number on anyone’s scale. You can also find disturbing figures in Wikipedia: figure. Are these facts misleading? we need to account for population growth. The prison population should naturally rise even if the proportion of crime in the general population is constant, since the population itself is growing. Here I show that these facts are NOT misleading, and that the system is indeed not fulfilling its purpose.
I am talking here about money managers. for those of us who have one. We assume they understand about markets in such a way that they can, and will generate at least the benchmark returns, what ever this benchmark may be.
In his book, “A demon of our design”: Richard Bookstaber talks about the concept of coupled systems. These are systems where, once launched, are impossible to shut down. One such process is a plain take off. Once started, the pilot has no way back, he cannot stop after getting off the ground, so the only way is up. Well, in financial markets, up is generally considered good,