We are witnessing one of the largest divergences between the financial markets and the real economy, in history.
We can expect to see some level of inflationary bottlenecks, especially in heavy industries which are easily switched off but take time to switch back on.
Looking past the “Bailouts are the end of capitalism” debate, we focus on the fundamentals of what drove the airlines, and the broader market, to allocate capital in a very reckless way