Conservatives say, just let the free market be, and let the money flow. Tax reform, for example, is not for the purpose of avoiding the tax liability. It is to let the money flow so everybody benefits from the natural, ontological efficiency of free and open markets — especially financial markets.
There is a new logic operating to win the argument. Objectivists argue that the new logic is really the old, absolute value of elite authority. Winners win, and everybody else, by definition, loses.
To maintain the legitimacy of free-market mechanics, however, capitalists still have to argue its natural identity. The problem is that the argument is shaped to justify defeating the free-market mechanism to command elite authority. It’s a con game and, as expectations measurably fail, more and more people turn to populist expressions of authority. “Make America great again!” for example.
Wall Street analysts are turning to psychological modeling. Since technical models tend not to work anymore, and playing out the con game of making it look like consolidation of demand is really the natural identity of the free-market model, psychological conditioning is at the forefront of the money flow.
Who understands the relationship of stocks and bonds, for example, much less considering whether it is normal or not?
Bitcoin is the latest example of psychologically modeled support and resistance. The efficiency of the money flow is not to employ people so they have income to make demands in the marketplace. It is to move the wealth of the nation in and out of “risk assets,” and doing so effectively increases the demand for debt, which drives the risk value at the current rate of interest.
Financial analysts are wondering if less money flowing from the Fed, and other central banks, will reverse inflated, risk-asset values, like stocks. Does that mean money will flow into bonds, which normally means that bond prices go up? Maybe that’s not normal anymore.
The result is attribution error, which is a psychological condition, and big financiers (operating with Clinton-era financial reforms, that HRC supported, if you remember) bank on it.