So, a 7-year bubble, a 7-year crater. Central banks have been filling that crater with liquidity, so we can row our boats across it. We need to make sure we’re getting to shore and not just hitting a rock.
But when we get to the other side, when we get home and can climb out of the crater, central banks can gradually reduce the rate at which they add liquidity. That’s not policy tightening. Rather, it is another welcome sign that things are getting back to natural growth. It indicates that the underlying momentum of the U.S. economy is expected to hold.