The underlying premise of the abstractionist theory is that wealth abstracts can be created forever.Of course, in the abstract world this is possible ( e.g. printing money), and so it can thusly fabricate a positive-sum abstract game. Whereas, in the real physical world, the second law of thermo-dynamics prevails creating a negative-sum real game. There are fewer and fewer raw elements available for use with each passing moment as each transforms into the chaotic or non-usable state.
Neo-classical economics, hence conveys a picture that is contrary to the actual meta-economic version. The Reality. Furthermore, there is a growing imbalance between the stored wealth in the positive-sum abstract game and the remaining inventory of usable elements yet to be transformed under the negative-sum real game. Disaster occurs when the imbalance between the two is breached - causing the systemic collapse of the entire financial system. So no wonder NO ONE UNDERSTANDS RISK!
Hopefully, this sheds further light on Marc's quoted statement and prediction.
Dr Peter G Kinesa
November 28, 2012