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The reply confuses the distinction between what the fundamentals actually are and what the market perceives them to be.
I can agree with the analysis as it applies to the former - but disagree with respect to the latter. And indeed I do! Deflation narrative rules the hearts and minds, if not the fundamentals.
But there are some problems with respect to the fundamentals too. Republicans are threatening to block passage of the stimulus bill... and it's not that Banks don't and won't trust each other - its that they want their competitors to fail so they can buy em on the cheap. They are restricting lending with that purpose in mind. Nationalisation is essential to the inflation narrative gaining sway. Governments may not have the downstairs of sufficient size to go through with nationalisation.
