This fairy story about all the money coming from the Fed's printing press is basically a misunderstanding Excess liquidity reduces the scarcity value of money,

This fairy story about all the money coming from the Fed's printing press is basically a misunderstanding Excess liquidity reduces the scarcity value of money, and results in lower quality thresholds for investment decisions. Thats pretty simple. If you want to debate about liquidity, you need to look at who invests in the investors. That is the place to measure liquidity that is relevant to distorting investment decisions. In the case of non-public equity...its pretty clear VC lps have too much cash. The Kaufman fund does research in this area and blames poor LP performance for the below-RAROC returns on VC portfolios when considered as an asset class. That should tell you something right there.