The scent of QE is back.

With overnight funding markets flashing early stress and NY Fed President John Williams hinting at “gradual asset purchases,” it’s clear: the liquidity cycle is turning again.

But the real question is why markets have become so dependent on the Fed in the first place.

Lance Roberts & Michael Lebowitz break down how the 2008 financial crisis fundamentally rewired market plumbing, sidelined private liquidity providers, and turned the Federal Reserve into the primary—and often the only—source of liquidity in the financial system.

0:00 - INTRO

0:20 - Government Shutdown Concludes - Deluge of Data to Follow

3:04 - Dow 48,000

9:43 - Will the Fed Cut Rates?

13:21 - Why the Rush to Cut Rates?

17:14 - What's Causing Turmoil at the Fed?

20:42 - What Changed w Bank Reserves?

24:31 - Capital Rules, Liquidity Rules, & Disincentives

26:20 - Breaking the Buck

28:45 - The Fed-led Liquidity Regime

30:32 - What Are the Drivers of Elevated Valuations?

34:10 - When the Government Spends Money...

37:42 - What Would Michael Do (if he was Fed Chairman)

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Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts, CIO, w Portfolio Manger, Michael Lebowitz, CFA

Produced by Brent Clanton, Executive Producer

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Articles Mentioned in Today's Show:

"QE Is Coming: The 2008 Roots Of Fed Dominance"

https://realinvestmentadvice.com/resources/blog/qe-is-coming-the-2008-roots-of-fed-dominance/

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The latest installment of our new feature, Before the Bell, "Market Rotation Fueling New Highs," is here:

https://www.youtube.com/watch?v=jm-ZtvJ12Fk&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1

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Our Previous Show, "ow to Spend Without Regret: Strategies for Enjoying Retirement," is here:

https://www.youtube.com/watch?v=saML4wbTAtg&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=47s

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