Commentary
Most people look at the stock market as a sign of the health of the economy. If the stock market is moving higher in value, things must be good. The truth of the matter is the stock market isn’t as important as the debt market, specifically the interbank debt market.
What goes on in the interbank market has a direct effect on what happens in the stock market. A healthy interbank market gives the stock market the footings it needs to sustain a rally. When it breaks, as we saw during 2008 and in March 2020 during COVID, the stock market drops precipitously….