Difficult to change unless there is a crisis.

There seems no prospect of a correction in share prices in the US, wrote A Nageswaran. There are 3 reasons for this. "The three factors are the monetary policy of the Federal Reserve, an ageing population, and the rising political and monopoly power of corporations," "They have done their job in boosting revenue and profit share of gross domestic product by 30% and expanded PE multiples by 70% in the last 20 years in the US, and these factors look set to continue." But the effects on others have been very bad. "They have boosted worker insecurity, worsened income and wealth inequality and widened the social and economic divide between the top 1% and the rest 99% in America." As pessimism about the future has grown an epidemic in opioid abuse is  killing more people than gun homicides and car crashes combined. Life expectancy in white middle aged people is declining for the first time in decades. So, one the one hand we have enormous asset price bubbles and on the other people are becoming poorer, except for the top 1%. "Such a large bubble typically occurs when three things happen simultaneously," wrote SA Aiyer. "One the arrival of an exciting new 'disruptive' technology that is difficult to value in the short term, but has huge potential. The second is easy market liquidity to help investors roar into markets. The third is cheap credit. All three elements are in evidence today." A bust is sure to come but no one knows when. If the crisis in 2008 was bad, "something scarier is heading your way", warned A Kapoor. Today's economic growth is being driven solely by debt. At the time of the crisis the US needed $4-5 to generate $1 of GDP growth, whereas in the 1950s, it needed $1-2 to generate $1 growth. Currently, China needs $6-8 to generate $1 of GDP growth and its debt has grown from $6 trillion to $28 trillion, which is 260% of GDP. The global debt has reached 325% of GDP. Although low by global standards India's private sector debt has grown to $105 billion from $59 billion in 2008. The reason why debt is growing is because of very low interest rates, and rates are low because inflation, especially in developed nations, remains very low, despite moderate expansion. "One possible explanation for the mysterious combinations of stronger growth and low inflation is that, in addition to stronger aggregate demand, developed economies have been experiencing positive supply shocks," wrote Prof N Roubini. The Bank of International Settlements recommends accepting 0% inflation as the new norm and gradually getting out of unconventional monetary policies. But central banks don't agree and are maintaining a target of 2% inflation. Only another crisis will force them to change. So we wait.