We know where the financial frictions come

In a model economy with financial frictions, the boom of asset prices may then lead to a credit boom. As a bubbly asset appreciates, it enhances investors' net worth, and higher net worth typically allows easier access to credit and higher credit limits. An uptick in borrowing then could lead to higher investment and could ultimately boost credit, output, wages, and consumption. In this way, a bubble can encourage (or "crowd in") investment because rising investment is a result of rising net worth.² Indeed, this dynamic is roughly consistent with the boom in investment.

We know the financial frictions come from government bundling the expenses over to the next regime.  It is in the chart, government debt piles up, we get recession and regime change together.  I  am not showing the chart again, we have concluded Fed research is worthless. We have concluded the all swamp parties have a stake in lying about this and we prepare for default.