Slok: Risk of a Slowdown Will Be Faster

The transcript discusses the implications of market tightening and data dependency on central banks' decisions, highlighting the backward-looking nature of relying solely on incoming data. It explores the potential for an economic slowdown due to Fed hikes and a banking crisis, emphasizing the unusual nature of the current crisis, which involves losses on the liquid side of banks' books rather than credit losses. The discussion also questions whether the situation qualifies as a banking crisis, given the stability and resilience observed in some banks.

What role does data dependency play in the decision-making process of central banks?

In what ways might the current economic conditions affect lending standards?