The Julia La Roche Show #309 Chris Whalen Warns of Year-End Liquidity Crunch
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Nov 22, 2025 
Chris Whalen, Chairman of Whalen Global Advisors and author of The Institutional Risk Analyst, discusses impending economic turbulence. He highlights a looming liquidity crunch as the Treasury pulls $1 trillion from the banking system, potentially squeezing year-end finances. Whalen warns of significant losses for companies with Bitcoin exposure and emphasizes a flattening housing market. He also critiques the Fed's inability to cut rates in December despite optimistic chatter, painting a concerning picture for both commercial real estate and public investors.
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Treasury Is The Real Monetary Gorilla
- The Treasury is the dominant force in current monetary dynamics, not Fed statements.
- The Treasury's recent $1 trillion cash drain is the single biggest factor shaping liquidity and markets.
Fed Happy Talk Versus Balance Sheet Reality
- Fed rhetoric from officials like John Williams is often
Use The Standing Repo, Expect Year-End Strain
- Use the Fed's standing repo facility if dealers need cash rather than the clunky discount window.
- Expect liquidity strains going into year-end as firms close books after Thanksgiving and reduce risk-taking.
