The conversation went something like this:
Kate: "No no, Nico, in the lexicon of the political class, the word "sacrifice" means that the citizens are supposed to mail even more of their income to Washington so that the political class will not have to sacrifice the pleasure of spending it."
Nicolas: "Kate! You're so off base. What’s going on in the markets isn’t an irrational panic. It’s a wholly rational panic, because there’s a lot of bad debt out there, and you don’t know how much of that bad debt is held by the guy who wants to borrow your money.