But when the Fed’s fundamental powerlessness is revealed and the buy-the-dippers have been forced to liquidate, the true meaning of “mild” contagion will become apparent.
Are we smart enough to keep our oh-so-easily conjured riches?
When the market goes bidless, it’s too late to preserve capital, never mind all those life-changing gains.
We have an extraordinary opportunity to transform our unsustainable “waste is growth” economy and toxic inequality to sustainable systems that optimize well-being rather than collapse.
So here we are, witnessing the switch from risk-on to risk-off in real time.
But alas, humans do not possess god-like powers, they only possess hubris, and so all bubbles pop: the more extreme the bubble, the more devastating the pop.
The value of these super-abundant follies will trend rapidly to zero once margin calls and other bits of reality drastically reduce demand.
If one possible result of the current system is collapse, realizing the system itself must be changed isn’t doom-and-gloom, it’s problem-solving.
The notion that consequence can be as easily managed as PR is the ultimate artifice and the ultimate delusion.
If the Fed set out to destroy the financial system, they’re very close to finishing the job.
