Christo53🏴

Later in the segment Mike Wilson explains why he believes the Federal Reserve will increase liquidity into year end. His thesis is there simply isn't enough liquidity to cover the debts of the AI buildout & the global bond market. This is the 2026 / 2027 debt wall that myself, @jam_croissant and others have warned is coming. Now here is what's really interesting... In 1929, they faced a similar situation. Private credit fueling the stock market was out of control and the Federal Reserve purposely kept interest rates high + money supply tight because they "feared a return of inflation. Everyone is assuming the Federal Reserve will bail out the system, yet they knew this debt wall was coming and installed a hawk Kevin Warsh at the Federal Reserve anyways. Back to 1929... When the first flash crash of -40% hit in October of 1929, the Fed didn't provide liquidity to save the market, they just lowered rates. The market recovered roughly 80% for 6 months before rolling over in 1930 in a prolonged downturn to 1932. The Federal Reserve "still feared inflation" (at least that was the narrative they used), so they allowed the money supply to contract by 30% into the 1932 bottom. This sounds exactly like what is happening right now. Kevin Warsh fears inflation, he's letting the bond market do the work for him, and he isn't responding to the wishes of the administration. If you want to trigger a global reset so you can deploy stablecoins and retire the unsustainable debt, this is how you would do it. Food for thought.