Do you think that if the central banks and governments around the world (indluding China) were to have allowed everything to fall to wherever it was going to go, without any intervention, that those single-digit P/Es (and prices of assets, in general) were out of line?
I guess what I’m trying to get at is that the “growth” of the preceeding ~10 years was due to excessive and **totally unsustainable** leverage; and by deleveraging to fundamentally sustainable levels, this “growth” would have to be reversed.
IMHO, the “financial crisis” was happening as asset prices (and “growth”) were accelerating to unsustainable heights as a result of all of that leverage and debt (that could NEVER be covered). Those prices and growth rates were never “normal” to begin with.
