Relying On The Kindness of Strangers? QT's fickle ways

As the famous play conveys, relying on the kindness of strangers is not a good strategy for living. However, during good times, such as Fed monetary easing coupled with Quantitative Easing, the kindness of strangers becomes almost compelling in its success. At times, borrowing or gambling yourself rich becomes a reality and "monkey see, monkey do" sets in.

As tightening becomes a reality, any strategy that relies on the kindness of strangers - such as the greater Fool approach or borrowed money - becomes dangerous. As a result, significant downturns have occurred in the housing and auto industry. At the same time, crypto and SPACs have taken significant hits. As the phase 1 of tightening turns to phase 2 of pausing, more problems in these kindnesses are likely to surface.