The Fed Will Take Down the Bond Market and the Stock Market

The QT time bomb is a short-term loan that's collateralized. The vast majority of people hold churchy debt in some form, and if you have big moves on a margin, then all their holdings get marked down to that. That's the enormous amounts of net losses that they immediately bear which might force margin cause may force portfolio rebalancing. Basically, it's a huge, hugely destabilizing event that would disrupt the markets, all markets.