The David Lin Report · Monday, June 29, 2026
Richard Smith explains that a 65-month liquidity cycle, as described by Michael Howell, is causing a shift of assets from the financial sector into real economy assets like energy. This cycle is marked by increasing debt and a need for refinancing, leading to potential conflicts over real-world resources.
“I think that the big bubble that's going on is the liquidity cycle.”
“And uh I introduced you to Michael Howell who I think you believe I believe you met on your show. He talks about uh really does outstanding work the 65-month liquidity cycle and in general we see liquidity tightening and we see assets moving out of the financial sector and into the real economy”
“And this is a classic part of the liquidity cycle where you see stresses from uh the financial sector basically getting overextended.”