This is the third RepubliCon tax cut in thirty five years. Tax cuts have an unbroken history of getting markets all lubed up with no place to go, but down:
Trumptards are largely enraged geriatrics sprinkled with a few 20-something man-boys for good measure. One thing they don't have, is time on their side. Which is why their policies all have the shelf-life of a rotten banana. Denial is the only policy they've implemented so far:
Steve Bannon speaking to Trump's base this past weekend:
"If you have the wisdom, the strength, the tenacity to hold that coalition together, we will govern for 50 to 75 years"
Meanwhile, back in the casino... The one thing that 1987, Y2K, 2008, and 2015 all have in common is that the Idiocracy didn't learn their lesson. This will fix the problem, at the source. Whereas 2008 was the story of Wall Street collecting self-imploding (subprime) yield using other people's money, this is the exact same thing. Same movie, better ending. And we know they never remember the ending...
"In economics, moral hazard occurs when someone increases their exposure to risk when insured. This can happen, for example, when a person takes more risks because someone else bears the cost of those risks."
Bailouts, mass layoffs, money printing, ponzi borrowing, negative interest rates etc. etc. Despite three limit down events in the past two years, U.S. gamblers remain oblivious to global risk...
"We didn't blow up last time, so add more leverage"
Per the axiom of reflexivity, insensitivity to risk has led to increased leverage and greater risk. During the pre-2014 global risk rally, gamblers rightly perceived the rising markets and falling volatility as a sign to take profits on volatility shorts. When volatility spiked they were inoculated from loss. In the event, like all good BTFDers they "learned" that risk reduction is for cowards and putzes. The fact that their own risk reduction was the reason they were unaffected, was lost on them. Literally. Fast forward to this latter cycle, and they took falling volatility as a rationale to increase exposure: