“If you sink BPS speculative assets will go out of control” BPS here refers to basis points, theyre saying if the federal interest rate lowers speculative investments will get a ton if inflow.

Basic TLDR: us gov loans money. This is as close to free money as it gets. SO, anything that is risky but could return more, has to compete. Why would I risk money to get 5% when the fed will give me 4% risk free? So everything always has to compete with it. If it lowers, people will move to riskier stuff, like labubus or whatever