...The reason for this is Dr Woody and his magic number. 3.25 is the post-industrial Pi. Long-term sustainable growth of net wealth must be GNP x 3.25%: if net wealth exceeds this magic multiplier, there must be a corresponding correction later. We are now living in the House of Correction. Stock markets are not about P/E; they are about the perception of value, not real value. The market is all about `I-Love-you' numbers. Like recently jilted lovers, no investors are going to want to get into a new relationship with stocks, bonds or property any time soon. So we'll all have to make do with less. Smaller golden parachutes, lower CEO salaries, less wages, less jobs, less of everything. At that point, Dr Woody began to talk about Super-Modularity S-Curves, and my eyes glazed over.