The fiction/magic can continue for as long as most people can suspend their disbelief.

The current valuations are believable and the imbalances are deniable. Yes there are places of clear fiction and total ridiculousness but they are rare enough to be tolerated. Economy runs on sentiment not fundamentals.

Well, not completely. Some fundamentals can crush sentiment like true scarcity, catastrophe or war.

Because of leverage, banks and markets can never survive a run for the money. If everyone wanted to move all their money to gold or put it under the mattress then all stocks and bonds would take a tumble. Not because of any change in the intrinsic value of the businesses or countries, just because of a change in sentiment.

Sadly a change in sentiment is need to reduce consumption to fight climate change. The necessary war on climate change will cause a recession or the eventual catastrophe of climate change will cause a great depression.

TEK