The Liquidity Engine Is Roaring — But Don’t Mistake It for Stability Yes, the Federal Reserve just flipped the monetary switch. QT is over. Liquidity is back. And markets, like junkies, responded instantly. But here’s the catch: they had to do this because the system is cracking, not because everything’s fine. Rate cuts and repo injections are not signs of strength — they are signs of desperation. Wall Street cheers it anyway, because they only speak one language: free money. Roberts is correct that this kind of liquidity surge often precedes short-term rallies, especially into year-end. But let’s not pretend the underlying mechanics aren’t deeply broken. You don’t inject $13.5 billion in overnight repos because the system’s humming. You do…
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