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A Liquidity Masterclass: Preparing For A Credit Cycle Downturn | Darius Dale

Inflection Point

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The Fed's Decision to Sit on Its Hands in the Credit Cycle Downturn

Most of the lending in the US economy precisely, exactly 67% to be exact comes from the non-bank sector. And so this is the lifeblood of the broader US economy. The Fed may choose to sit on its hands while some of this takes place. It's going to cause other players in the system to raise cash and ultimately that will lead to a contraction in credit.

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