TRND - Weekly Commentary: Keeping The Dance Party Rolling

• The spectacular collapse of Archegos marks a significant inflection point, ushering in a tightening of lending conditions at the "margin" for increasingly vulnerable bubbles.
• In contrast to the previous bubble period, government "money" has been a principal bubble fuel. Policymakers have enjoyed incredible latitude to inflate government finance, a unique dynamic that has worked to prolong this incredible cycle.
• Markets, understandably, are content to fixate on the stability of government monetary inflation as ensuring an irrepressible boom.
• Rising asset markets essentially create their own self-reinforcing liquidity. Yet, illiquidity lies in wait. It's when markets are in retreat that liquidity issues come to the fore.

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