The market and the government will continue to promote and support a neofeudal status quo until they are forced by society to restore the common good and opportunity. Of the three primary dynamics of human endeavor–the market, government and society–we focus almost exclusively on the first two.

The resulting erosion of collateral will collapse the global credit bubble, a repricing/reset that will bankrupt the global economy and financial system. Scrape away the complexity and every economic crisis and crash boils down to the precarious asymmetry between collateral and the debt secured by that collateral collapsing.

Everyone wants a trend they can trade for effortless gains. That may no longer be realistic.

What the Warring Elites don’t want us to realize is that a system of transparent competition in which no fiefdom is allowed to become dominant best serves the interests of society at large.

A stagnating zombie economy never recovers. Four decades of rising markets punctuated by crisis-induced crashes seems to have fostered an unspoken belief that no one should ever get hurt in markets or the economy.

We can also predict that the next round of instability will be more severe than the previous bout of instability. Everyone is in favor of “doing whatever it takes” to “restore financial stability” when the house of cards starts swaying, but funny things happen on the way to “Restoring Financial Stability.”