Collapse
The response to the first phase of any collapse (whether in markets or anything else) is always an attempt to do whatever it takes to return to "normalcy." For the powers that be in capitalism's corporatocracy, this is essential. Hence, we see the drums being beaten by the Secretary of the treasury: Mnuchin predicted the economy will roar back with a"gigantic" fourth quarter, saying "we are going to kill this virus" and return to a "normal world." All these efforts (bailing out businesses, checks to consumers, Fed's expansion of multiple credit facilities and pouring trillions into the markets) are likely to fail. The markets will indeed rise on these "hopes," but hopes are for the headlines, not for the factors that drive the markets. All these efforts are counter to the"corrective spirit “of genuinely free markets. The markets are not free under the conditions we see at present. Genuine corrective factors are not allowed to work. If they were, such as was the case in the Great Depression, then would follow, not a return to "normal,” but to a deeply different way of doing things. Hence the many new programs of the "New Deal" introduced by President Roosevelt. Only a few of his proposed programs were enacted and survived legal challenges. Social Security was one. The corporatocracy is relentless and never let’s equitable conditions become normal. Hence, the increasing degree of inequality. This hubris invites correction. We will likely be seeing more and more of Nemesis and her retributions for hubris.