> You still have a buyer and seller even if the prices are stupid. First of all, this is broadly untrue. It's really only true for a certain set of meme stocks

> You still have a buyer and seller even if the prices are stupid. First of all, this is broadly untrue. It's really only true for a certain set of meme stocks, but that's because the market allows for fun stupidity. But just because the market allows for fun stupidity, doesn't mean the mechanism doesn't work wherever there is an absence of fun stupidity. Also, the status quo is arguably not a "market", at least as the efficient-market hypothesis defines it. Fed monetary policy basically breaks the usual flight-to-safety mechanism by providing no other alternative than to park capital in equities due to inflation and low interest rates (QE, basically). Additionally, Fed bailouts of junk bonds essentially removes all downside risk associated with risky assets while preserving the outsized reward; effectively guaranteeing stupid prices for certain assets.