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Nik Bhatia highlighted insights from a special episode featuring Michael Howell. He explained that the current liquidity drawdown is tied to economic recovery and rising demand for working capital.
He further stated that ongoing investment in artificial intelligence will continue redirecting money from financial assets into the real economy.
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Earlier this year, Bhatia pointed to a sudden decline in the TBL Liquidity Index compared to the past decade. He also discussed flattening of the Treasury curve as evidence of market resilience despite rising yields and increased market fear. These comments add context to his latest remarks on liquidity shifts.