Has Wall Street been bailed out so many times it can no longer price a crisis?

The article argues markets may be mispricing geopolitical risk: the S&P 500 (US SP 500) hit an all-time high above 7,000 even as a major oil supply shock pushed Brent from about $72 to nearly $120 and national gas prices rose ~37% to $4.10/gal. The rally is driven largely by AI/semiconductor mega-caps and widespread earnings beats (86%), masking strain elsewhere (MSCI ex‑US fell sharply). Behavioral conditioning—fifteen years of policy interventions and a reflexive ‘buy the dip’ mentality—has shortened investors’ threat horizon, leaving the index priced for a clean resolution despite an Iran proposal that would reopen the Strait of Hormuz before nuclear concessions. The piece warns this optimism could be unjustified and markets may lack the capacity to price a genuine prolonged crisis.