Will normal service be resumed?
Hopefully, the technical correction in equities is over, and economists can go back to talking about the important things: economic data, or why Bitcoin will never be a real currency. The economics profession would like to make clear that this correction was not the fault of economists. This was not fundamental.
Will the equity move impact the real world? Probably not. The change in cost of capital for large companies is not a problem. The move is not significant enough to create a serious negative wealth effect. Global economic growth this year can very easily justify global equities' earnings growth of 10%, before tax cuts.
The Germans have kindly provided an antidote to the excitement of equity markets. The world's most tedious political crisis continues. Coalition negotiations have dragged on another day. Markets lack the energy or enthusiasm to really care.
Four speakers of the US Federal Reserve crowd onto the agenda today. It is worth paying attention, as some of them are economists. The new Fed Chair is not an economist, but a lawyer. (The head of the German Reichsbank in 1923 was not an economist, but a lawyer. Let us hope causation does not mean correlation).