Round about late March, we entered a Financial FantasyLand in which all the sins and excesses of rampant financialization were going to be painlessly washed away. Mever mind the entire U.S. economy is an inverted pyramid of balance-sheet "value" and debt resting on a shrinking foundation of collateral; everyone would be made whole in the Federal Reserve's Financial FantasyLand.
You are now leaving FantasyLand: trillions of dollars of phantom value have already vanished, and these catastrophic losses will be taken by somebody. The question is: who will get the concrete overshoes? Whose balance sheets will collapse to negative numbers, erasing all their phantom wealth?
Everyone was delighted to suspend reality and entertain the fantasy that there was a cost-free way to bail out financialization's greed-soaked sinners: The Fed will simply print as many trillions as needed to make everyone whole. Since it doesn't cost the Fed anything to digitally print endless trillions, this "solution" is completely, totally free.
What an amazing moment of grace: all our sins washed away in a rising river of Fed-printed money. With endless trillions available, everyone can get bailed out forever. Collateral, actual earnings and profits, none of that matters. The Fed's grace is godlike in its infinite expansion.
This escape from karma, consequence and divine retribution was as temporal as the ride through FantasyLand. The wheel of karma has turned, The Tao is reversing, the banquet of asymmetric, non-linear consequences has been served and the Fed's godlike powers will be revealed to be as delusional as the "value" and "wealth" that's piled up in the balance sheets of the top 0.1%.