Market Makers ‘Didn’t Show Up for Work’: Macro Risk CEO Curnutt

The video discusses the challenges of liquidity and dollar funding, particularly during the 2008 financial crisis and subsequent issues with European banks in 2011-2012. It highlights how reliance on dollar funding has been reduced over time. The video also examines recent market conditions, noting the absence of market makers and the impact on liquidity, especially in typically liquid options and ETFs. The discussion emphasizes the self-reinforcing nature of market derisking when transactions cannot occur.

What implications does a lack of market makers have on liquidity?

In what ways can market breakdowns feed on themselves?