The great retreat to cash
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The flight to cash is processed as prudence. But $7.86 trillion sitting in money markets is also $7.86 trillion not building anything, not funding anything, not circulating. The collective body is clenching. The retreat is rational at the individual level and paralytic at the systemic level — a coordination failure dressed as wisdom.
Appearances
Money market fund assets hit $7.86 trillion — a new record. The S&P 500 sits 9% below its January high. The Dow is in correction territory. Five consecutive weekly losses, the longest streak since 2022. Unemployment rose to 4.4%, with the first notable monthly job loss since the pandemic. Labour market and energy shock operating simultaneously.
The flight to cash is processed as prudence. But $7.86 trillion sitting in money markets is also $7.86 trillion not building anything, not funding anything, not circulating. The collective body is clenching. The retreat is rational at the individual level and paralytic at the systemic level — a coordination failure dressed as wisdom.