Unf*cking The Republic The Plumbing of the Financial Markets Is Leaking: Understanding the U.S. Liquidity Crisis.
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Nov 10, 2025 Explore the deepening cracks in U.S. financial markets as Max reveals the looming liquidity crisis. Delve into the stark contrast between optimistic stock trends and worsening economic indicators. Learn about the repo market's critical role and why the Federal Reserve's actions are vital amid unstable conditions. Discover how interest rates are really set and the implications of shifting liquidity into treasury accounts. Lastly, connect the dots between market moves, consumer behavior, and potential defaults in the economy.
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Market Signal Vs. Real Economy
- The public stock market disconnects from the deteriorating real economy and hidden financial stresses.
- Max highlights layoffs, weak hiring, and stagnant wage growth despite inflation staying above 3%.
Low Oil Reflects Collapsed Demand
- Despite geopolitical shocks that should lift oil, crude stays near $60 because consumer demand is dead.
- Max links weak oil and stagnant consumption to shrinking consumer purchasing power and business contraction.
Repo Market Is Critical Plumbing
- The repo market is critical plumbing that clears trillions of dollars each night.
- Max warns the Fed's Standing Repo Facility, a rainy-day fund, is currently empty and being strained.