WHAT FEEDS THIS MARKET
The Liquidity Soup
"We are what we eat." That's a common saying. It is a criticism & reminder that 'what we put in we get out'.
Healthy lifestyle. Healthy foods. Healthy body.
And the reverse is true.
That's the mantra and we ALL know it to be true, even if we choose to ignore it.
This is how I view Liquidity, and my study of it. There are LOTS of inputs.
But the output is binary: healthy or not healthy.
More to my point: short-term binging on junk food isn't the issue. It's the recurring binging and/or a steady diet of the bad food and bad habits that brings about the long-term unhealthy consequences. But few think about that 'in the moment'.
The House just passed a terrible fiscal spending plan we ALL know is bad for US.
House Republicans narrowly passed their budget megabill, sending the massive package containing the bulk of President Donald Trump’s agenda to the Senate.
No one cares it seems except this guy.
Congress can do fantasy math, but when investors put money on the line, the math gets real. Bond markets are already demanding higher returns because Congress isn’t serious. The Fed no longer controls rates.