/biz/ - Business & Finance

>>54581570
The boomers are retiring and so all of that capital in their retirement accounts is getting sucked out of the markets for the next few decades. It's a giant liquidity crunch on the dollar side. This means the hedgies and market makers and algo traders who made money by skimming tiny pieces per trade of extremely high volume over the past ~40 years are going to go bankrupt even without trying to cellarbox a profitable company. That in turn weakened all their counterparties (banks, broker-dealers, prime brokers, etc.) via exposure to ever riskier hedgie strategies being used to stay solvent. See Archegos. Then you add the 5y chart of federal funds rate looking like JPow stepped on a rake and they have nowhere to flee to. We are in stasis because they do not have an exit strategy.