Hot money blunts the impact of all but the most extreme events in the real world.
Computer algorithms dominate the trading environments in volume, speed, and short term gamesmanship. A 'random walk' my ass.
The market becomes an endless churn and burn with an upwards bias supported by the Fed's expansion of the money supply.
The market is notable for the bifurcation into professionals and marks, with the occasional warring factions between the monied interests.
Wash, churn, rinse, repeat.
This is what I mean by 'the technically driven trade.' It is a constant game of liar's poker in a largely lawless environment.
The moral hazard is the misallocation of capital, the misappropriation of policy money, the corrosion of the public trust and national character, and the dissipation of wealth in the occasional market breaks and collapses.