Viewpoint: The main reasons for the US stock market correction are regional bank credit problems and the US government shutdown.

Crypto influencer @qinbafrank posted on the X platform that the recent US stock market correction is primarily due to two factors: 1. Credit problems at regional small and medium-sized banks. Zions Bancorp recorded a $50 million impairment loss on two commercial loans to its subsidiaries, while Western Alliance Bancorp sued Cantor Group V for loan fraud. Cantor Group V is a subsidiary of Cantor Fitzgerald, which helps manage Tether's US Treasury reserves. 2. The US government shutdown has led to liquidity constraints. Excessive bond issuance has depleted overnight reverse repo quotas, while the government shutdown has prevented the Treasury General Account (TGA) from disbursing funds, leading to a continued decline in commercial bank reserves and exacerbating market liquidity constraints. The analysis suggests that the market's future trajectory depends on when the shutdown ends.