Deluded By Liquidity Glut?

I read latest by Rick Bookstaber today - Common Sense Crisis Risk Management, but this sentence does not leave my sick mind:

With so much money flooding into the market (and so much money means so much leverage), people start to scan the landscape for the less known – and less liquid – markets to find value.

This should be amazing, and I have noted that long time ago, there seems to be some mis-understanding? Even Milton Friedman, the high priest of mechanical monetarism, according to TheMoneyIllusion, I thought so too Dr. Friedman, has noted:

Low interest rates are generally a sign that money has been tight, as in Japan; high interest rates, that money has been easy.
. . .
After the U.S. experience during the Great Depression, and after inflation and rising interest rates in the 1970s and disinflation and falling interest rates in the 1980s, I thought the fallacy of identifying tight money with high interest rates and easy money with low interest rates was dead. Apparently, old fallacies never die.

So, liquidity is needed to keep the system alive, but "cream lickers" at efficient frontiers...

... start to scan the landscape for the less known – and less liquid – markets to find value.

Deluded by liquidity glut and...

... fallacy of identifying tight money with high interest rates and easy money with low interest rates ...

Apparently, old fallacies never die.