After the baptism of the Great Depression in 1929, governments around the world have basically reached a consensus: it is better to create false prosperity by increasing the money supply than to remain in a prolonged depression.

This can be understood as using the 'printing press' to exchange time for structural adjustments, using space to buy time.

The benefit of this is that since 1929, the global economy has basically avoided another Great Depression.

The lesson from the Great Depression is that allowing the market to self-adjust may lead to a catastrophic deflationary spiral, as the gold standard limited the ability to loosen monetary policy, exacerbating deflation.

This led to the rise of Keynesianism, where government intervention and counter-cyclical adjustments became a consensus, and the Federal Reserve ultimately abandoned the gold standard.

After 2008, the Federal Reserve initiated multiple rounds of quantitative easing, and in 2020, continued to lower interest rates and expand bond purchases.

The Federal Reserve's balance sheet grew from $0.9 trillion in 2008 to $8.9 trillion in 2022.

The benefit is that increasing the money supply boosts market confidence and promotes investment and consumption. The side effects are asset bubbles, accumulated debt, and widening wealth gaps.

Since the wealthy hold more stocks and real estate, loose policies will drive up asset prices and widen the wealth gap.

Meanwhile, ordinary workers are at the end of the easing effect due to diminishing marginal returns, and the lag in wage growth leads to income growth for ordinary workers lagging behind capital gains.

The above nonsense is just to give everyone confidence. Seeing many people panic and cut losses in this technical bear market, my advice to ordinary investors is to pay less attention to the news; the sky will not fall. Even if it does, we will all be in it together, so what is there to fear!

Do not panic, do not be afraid. Trust in assets, trust in easing, trust in cycles, trust in taking over; taking over really requires courage, and it is indeed a blessing.