Progressing Through The Credit Tightening Cycle | Julian Brigden
Inflection Point
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The Impact of Stress in the Banking Sector
The Fed has created a crack addict to whom they've become beholden, right? And they just boosted the crack. There's no greater proof that fundamentals don't really count when it comes to asset prices than COVID. The way that money banks make their money is they borrow short and they hope to borrow at a very low rate by paying you top and, you know, to borrow your money. So what starts the credit cycle in terms of the tightening is when the central bank starts to raise those short term rates and the curve starts to flatten.
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