But sooner or later reality will sink in.
There is simply an incredible amount of mental inertia on Wall Street and around the world AND in global central banks really.
Many are having a hard time with the notion that the world has changed...and the old dominant US economy is now:
GONE WITH THE WIND.... AND IT WILL NEVER BE BACK. THE 20TH CENTURY IS OVER!
Right now Macroeconomics in its most basic form is simply being ignored...
The ability of the markets to block-out or ignore reality for long periods of time would be an interesting academic study for a PhD candidate...?
What seems to happen is that the "old order" defends itself to the very last man. Sort of like a chess game were "check" is not "checkmate."
Things occur in economics not be cause they are "just." Or even because they are inevitable....
Rather, things occur in macroeconomics simply because there is NO WAY OUT.
CHECKMATE!
Thus, PANICS occur shortly after the first serious players see the checkmate as being very close. But, economic events move so slowly, almost like molasses on the moon, that many jump to soon.
Perhaps this is why "tiny events," like say, the failure of a small bank in Germany, can cause a sudden cascade of consequences that brings down the whole rotten "house of cards" seemingly on some insignificant event... Indeed economies rot from the inside out... "Let them eat cake" has been the cry of the dying old order throughout history
So perhaps the current "house of cards" could be waiting for some butterfly in China to flap its wings...?
