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Is the Problem That Not Enough Is Breaking?

The Breakdown

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What You're Seeing Over and Over Is the Crack Showing

The s and p 500 has dropped more than 23 % since this peak in january, but there hasn't been one single big dramatic day in tht period. What we're seeing in the stock market is not iliquid and panic sell offs, just the slow and steady march downwards of a prolonged bar market. There are signs of stress, for sure. Bloomberg's liquidity index is at its worst level for 12 years, excluding the pandemic spike. And bank of america's global financial stress indicator is showing a reading only seen twice in recent history,. None of that is good, but the market is still trading, and treasury auctions are still being successfully completed.

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