Contractions in Money Flows and Market Liquidity - Part 2

Summary

• A discussion of potential market inflection points and the perfect storm.
• Dollar strength is a cause and effect of different self reinforcing market, liquidity and credit contractions.
• The "flight to safety" in Eurodollar markets has artificially raised the dollar.
• The "shortage" of "asset quality" and potential for disorderly unwinding of asset mismatches.

As Joseph Calhoun noted the current market perception in "Rose Colored Glasses"... it's just a dream within a dream and somebody keeps hitting snooze on the alarm clock.

Mr. Calhoun was harkening to Edgar Allan Poe -  "All that we see or seem is but a dream within a dream."

In our last missive, we discussed inflection points and their subtleties.

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