Summary

CrossBorder look very closely, when they analyze liquidity, what the effect is of the amount of liquidity that goes into the system. On the call, Michael mentioned that if you look at the balance sheet of the Federal Reserve, as we speak, is still expanding. But Michael argues that the amount of money that has been dished into markets for various reasons has been falling for several weeks now. And that's a backdrop for what has been opening to 2022 for world stock markets and Michael believes it’s likely to get worse. He contends that we’re really at a cliff edge when it comes to looking at the other liquidity backdrop on what central banks are doing. Michael’s view is that central banks have become so important in the financial system that they simply can't step away. They're here for the long-term now. And because of that they're going to have to put more liquidity back into the markets at some stage.

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