There is $2.5T in reverse repo because the banks don’t have anything better to do with that liquidity right now.

This is not going to create a Lehman moment for anyone but Silicon Valley and its collection of unprofitable startups that need regular injections of easy money financing that is surprisingly not as available when rates start to approach reasonable levels.

Feels very much like the rate hikes are working as intended and the people who kept convincing themselves a pivot was right around the corner are learning a valuable lesson about prudent risk management.