Masters: Risk of a Severe Hard Landing Is Diminishing

The video discusses the potential for a recession in the US and Europe, noting that while risks exist, a severe downturn is less likely now than six to nine months ago. Economic policies, particularly monetary ones, have had an impact, with inflation still high in Europe but moderating in the US. The speaker compares the current economic environment to the 2007-2008 financial crisis, emphasizing that lessons learned have reduced the likelihood of a similar crisis. Today's challenges are more about liquidity, driven by unexpected interest rate hikes, but regulatory actions have contained the situation.

What factors are contributing to the current liquidity crisis mentioned in the text?

What actions have regulators taken to contain the contagion associated with rising interest rates?