As the crisis ignited (though not caused) by CV-19 develops, Raoul examines how it breaks down into phases. The initial liquidity crisis has morphed into the hope phase. After hope comes insolvency. Insolvency is a much harder nut to crack. Businesses must struggle with the legacy of misallocation of capital, debt, outdated business models, excess staffing, supply chains and political uncertainty. Consumers will need to reassess consumption patterns as the cosy blanket of income support is tugged away. Debt deflation looms large. Central Banks are ill-equipped to help.