Excess liquidity and bubbles

Both in the United States and the euro zone, liquidity, whether defined as the monetary base (the central bank money supply) or as money in the M3 sense (banknotes, sight deposits, savings books, term deposits, money market funds), is still very abundant. As we have seen in the past, portfolio rebalancing (between cash , bonds, equities, other assets, etc.) then leads to a rise in bond prices (inverted yield curve), equities and other assets, for example Bitcoin. In reality, if we look at short-term interest rates, monetary policy is now restrictive, but if we look at investable liquidity, monetary policy is now expansionary.