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Global Liquidity & Market Direction: Exclusive Michael Kramer Interview with Michael Gayed

Lead-Lag Live

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The Importance of Global Liquidity

Mike Downey: I have this global liquidity model, which is a combination of the balance sheets of the four major central banks. He says reserve balances to me were always the most important thing in terms of directing market direction after 2020. But one day he looked at margin debt data and saw that it was just like Reserve Balance chart. And so what he realized was that somehow banks through the reserve balances were expanding and contracting liquidity through how much money they lend through margin and leverage. That was then feeding into the equity market.Downey: What you're seeing right now is that the BOG and the PBOC aren't expanding their balance sheets anymore. They've actually sort of declined a little

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