The history of cash reserve discipline and capital deployment constraints is not a simple opposition but rather the timeless narrative of a delicate balance that every major player must manage.
It is true that excessive liquidity can become a burden, like a ship too heavy to maneuver in calm waters.
But this same liquidity is the lifeline during storms, enabling strategic acquisitions or supporting struggling portfolios, as evidenced by funds' ability to intervene during liquidity crises.
Without it, the best market opportunities in stress periods, such as buying discounted assets after an unexpected shock, would remain inaccessible, turning prudence into regret.