They saw the role of state institutions – the tax office, law enforcement, the judiciary – not as upholding certain rules by which all economic actors had to operate, but rather as a “predatory machine” that could be used to destroy rivals and seize their assets.

And there is a big shift happening: The Fed has started lending to entities, including states and banks, under programs that channel funds into spending by states, municipalities, and businesses, rather than into the financial markets. These types of programs are propping up consumption – not asset prices. That’s a new thing. I don’t think the hyper-inflated markets, which have soared only because the Fed poured $3 trillion into them, are ready for this shift.