Short excerpt from a YouTube video ("How Institutions Balance Their Books") in which the speaker explains that a market action brings in return liquidity while cutting off organic liquidity growth; the speaker argues that indefinite liquidity creation is unsustainable and must be curtailed during market consolidation.
This move is very, very necessary. There's so many movements, operations, calculations, algorithms, all making a composite perfection. Right? This move, what it does is it brings in the return liquidity that's needed to get back here, and it cuts off the organic growth of the liquidity. As long as the market was doing this consolidation near the top, you can. You keep continuing to have indefinite liquidity. So. So at some point, it has to cut off. We just can't keep building more liquidity in forever. It won't do that. Right.
