US Equities down another 10% last night, even after Fed’s massive liquidity injection. I understand the snow slide is due to massive deleveraging. We have seen this in year 2008; but today, the low interest rates globally with massive money printed in the last decade inflated the whole world’s leveraging even worse. Thus the sell-off pressure in US Equities when the mkt is forced to deleverage as Equities price no longer holds. The sell-off pressure has infected the liquidity (like the Covid virus), across all asset classes, including the most liquid asset: US cash Treasuries. This has NEVER happened in modern financial history in my limited memory.
