The “stability/instability paradox” assumes that all players are rational, and such rationality implies avoidance of complete destruction...Simply, the Fed is dependent on “everyone acting rationally.”
The increasingly unstable and unpredictable world isn't the only reason why betting on safe-makers and security companies might not seem like a bad idea to some savvy investors.
It might be the unprecedented inflation (pun intended) of outstanding debt that the monetary policy nobility are missing in each and every of their senseless comments/arguments/conclusions.
Perhaps the coronavirus will turn out to be a catalyzing black swan event, but the underlying conditions for an economic and monetary crisis already exist...
Central banks have done nothing to put an end to the boom-and-bust cycle. Instead, their unscrupulous interventions in credit markets just prolong the boom...
