Don't confuse capital gains with a religious experience. I'm aware of Feds trapping themselves with continuous QE and the new go to tool. The roaring twenties style boom and bust was too much for them to ponder again back in 2008 with the counter party risk in the potential complete meltdown of the financial system. I think the Chinese could smell the same scenario between Lehman and Evergrande but they have much more control than the Austrian style capitalism or remnants of that.
Logically to let the equity market 'do its own thing' would have been a globally disastrous scenario. QT was also noble but we saw that breaking point yield curve inversion in 2019 or 2018, succeeded by the the massive overnight spike in interbank borrowing rates. Pandemic was just the big trigger that push the system over the cliff at warp speed.
I still recall our other resident gold bear, the retired banker name escape me mocking at such thoughts etc.
The current sell off seems 'normal' for January after a X'mas rally but this time as like the past taper tantrum we experience fast motion. Does appear to be another BTFD!
