Why The End Of The Debt Ceiling Crisis Triggers The Next $1.2 Trillion Banking Crisis

Back in January, when previewing the coming rapid drain in the Treasury cash balance, we were the first to warn that contrary the consensus opinion at the time that markets would tumble at the start of the year, the resulting liquidity injection of roughly $300 billion...

... would boost risk assets and would effectively offset the liquidity drain from QT (little did we know back then that the Fed's QT would lead to a premature small bank sector collapse and force Powell to inject $400 billion).