Here’s my quick take and breakdown of what happened in the “”markets”” and what comes next.
This wasn’t due to mom ‘n pop selling, this breakdown has all the hallmarks of being a “liquidity crisis.”
That means it’s a bigger, uglier beast. One that the Fed will have to fight using “balance sheet expansion” which you and I know as “grocery prices and insurance will be much more expensive next year.”
Get ready, this isn’t your average credit/liquidity event, this is one that’s been many years in the making.
If this hits the system’s plumbing, especially currency and/or interest rate derivatives, it could trigger The Great Taking machinery.