Part 2/9:
Dimon’s use of the term "kurfuffle" goes beyond mere fluctuations in interest rates. The implication of such an event refers to a systemic breakdown akin to the crisis that unfolded with Lehman Brothers in 2008. If liquidity in the bond market were to seize up entirely, the repercussions could reverberate throughout the global financial system, prompting an urgent response from the Fed. This dire scenario is somewhat reminiscent of the market turmoil witnessed in September of 2019, where the Fed's hesitance to adjust policies led to a liquidity crisis.