Somehow the stock markets remain buoyant, hovering near last week's highs, even as the death and unemployment projections get worse. Are we near an inflection point, on the cusp of a bearish reversal? Or will the relief rally continue?
Answering this question was part of my goal in the original post. I don't have the inside information to predict short-term events, but, in the medium to long term, if you think of the theatre analogy, it makes sense that the elites will want to deflate the values of stocks and bonds.
Doing so will minimize the inflation necessary to reset the system. That's the financial view.
Another view that will reach the same conclusion is the real-economy view. During the asset-bubble era, many people worked to serve the beneficiaries of the bubble. Now they have to be 're-purposed' for the whole new set of demand in the new economy. The cheap and efficient way to achieve such retraining is to give them pain by deflation, so they sober up and work hard for not much money. So deflation will be applied to the extent that is politically sustainable. The deflation of stock and bond prices only directly hurt pretty rich people, and so is politically 'cheap' as well.