I’m not sure that it even matters anymore, but let’s take a look at the latest liquidity data from the Fed:

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I’m not sure that it even matters anymore, but let’s take a look at the latest liquidity data from the Fed:

It’s a quiet Sunday, so let’s thumb through the latest key liquidity data from our dear friends in the federal government. We see the Reverse Repo continuing to plunge.

To see Part One of this post, click here.
In fact it preceded 3 of the last 5 recessions 1982 1990 and 2007. Not a bad start considering that the 2020 recession was a very special one.
Now even if 1990 was a recession year it can be considered as a soft landing, things ended up really well at that time and there’s another period that you should take a look at: 1994 when Greenspan aggressively raised rates without causing a recession.
When you look at the chart the pressure index was raised well above the red line and for a relatively long period of time, why did we end up in a no-landing scenario?
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