Credit tightening can also trigger self-reinforcing feedback loops
@Callum_Thomas:
$SVB Financial Group(SIVB)$$S&P 500(.SPX)$ Even before the SVB debacle, credit conditions were reportedly tight from the consumer's perspective...Credit tightening raises the odds of recession. Credit tightening can also trigger self-reinforcing feedback loops e.g. in vulnerable sectors like Real EstateBond yields vs PMIs (inflation vs recession)Maybe we already have had a cyclical slowdown globally, but if these PMIs keep rising, there will be quite a bit of repricing in many markets. It could have a period where PMIs rebound & throw everyone's narratives and expectations into disarray...https://twitter.com/Callum_Thomas/status/1639903442360733696