To borrow your analogy the patient is not passed out, he is vomiting all over the room due to credit&leverage intoxication. There is hoping he has coughed up all of that and then some, so he will stop doing that and begin being very sick but conscious, which would be a makred improvement over what we have right now.
Ok, allegories are fun but back to business:
we had some serious issues prior to great depression with stock market - people didn't know how to be moderate. With some education and regulation we got over that (e.g. dot com was not that bad). So now we have a similar problem with leverage - people failed to excersize moderation. They will learn and credit and leverage will assume their natural place as instruments of funds management.
Having said that, I think there are more shoes to drop yet. While there might be a short-term rally, there will be even more drops after that. The size of downturn should be equal to size of run-up (minus the productivity gains over the last decade).
Ok, allegories are fun but back to business:
we had some serious issues prior to great depression with stock market - people didn't know how to be moderate. With some education and regulation we got over that (e.g. dot com was not that bad). So now we have a similar problem with leverage - people failed to excersize moderation. They will learn and credit and leverage will assume their natural place as instruments of funds management.
Having said that, I think there are more shoes to drop yet. While there might be a short-term rally, there will be even more drops after that. The size of downturn should be equal to size of run-up (minus the productivity gains over the last decade).