But then markets might take the stimulus offered as a good omen and charge into the heavens again, exacerbating the current anomalies. CBs are going to have to do better than our 17.5mill or the Feds 4.5 trill.
Possibly anytime soon the Chinese are going to throw a stunning stimulus program into their economy. PBC is caught: it must do something very very big but the current corporate and non corporate debt problems are going to be just a taste of debt problems to come. Like petrol on a fire. They are fiddling at the edges with reserve requirements giving banks a much freer hand in lending. It would not surprise me that China is the ultimate reason for the fall of the house of cards.
The global economy is run by CBs and on the backfoot they'll go stimulus nuclear even as the ship sinks. What a mess.
