Widely believed idiocy:
Earnings don't matter anymore
The 'Conomy's doing great
Recession risk is low
We're borrowing our way out of a debt crisis
China's meltdown is "contained"
Oil is heading back to $80
Central banks have eliminated risk
Printing money is the secret to effortless wealth...
Hedge Funds can't hedge and stay in business, so they don't. Central banks have made it impossible for anyone who manages a P&L to remain hedged, which is why EXTREME complacency reins in the face of EXTREME risk.