Damus
Lyn Alden profile picture
Lyn Alden
@LynAlden
As long as borrowing stress remains elevated, many asset prices are likely to remain choppy.

This is why the Fed is ending balance sheet reduction, but simply ending it is not necessarily sufficient. By 2026 they will likely go back to balance sheet expansion to put out this fire. Notably, it likely won't be very fast/large balance sheet expansion, but rather will be just enough to help settle this down, which makes a big difference.



325❀️53πŸ€™9❀️2πŸ’œ1πŸ€”1
Caleb Gregory · 18w
Thanks for sharing, Lyn. Thank goodness we have Bitcoin. The Fed is going to print & we have stimulus on the horizon. They have to inject liquidity to keep the system afloat. Those without assets are about to feel the sting of inflation even more.
Mathintoshh · 18w
Warming up the printer πŸ–¨οΈ πŸ”₯
Cykros · 18w
Definitely experienced some chop while I was wishing for a one cancels the other conditional order pair with a buy stop and a limit order this morning on a Bitcoin only platform. Missed out on over 3000 sats πŸ˜„. Still not going over to one of the shitcoin casinos though. I'll pay to not fund that ...
Bitcoin_To_The_Oblivion · 18w
It would be naive to think that Bitcoin price has everything to do with just macro and fed fund rates. If you would have spent same time on monetary data vs spam on bitcoin then you would have also considered the release date of shitcoin core v30 (aka malware) and how it negatively affected the bit...
karlo · 18w
I do not understand the mismatch between global M2 liquidity, which is trending upward, and the apparent problems with bank and repo market liquidity. I would have expected M2 liquidity to play a larger role in asset prices than the latter (which is why I was completely blindsided by the current car...
Clapton1062 · 18w
What will be the bitcoin yearly growth in 2026 if Fed not going to expand the balance sheet as much as before?
Petulant · 18w
Grok, please explain this to a left-curver finance illiterate like myself
Petulant · 18w
Asked the abhorrent AI to rewrite Lyn's post in pleb lango. You're welcome: "As long as it's tough and pricey to borrow money, prices for stocks, houses, and stuff like that will keep bouncing up and down wildly.That's why the Fed is stopping its money-tightening plan, but just stopping might not f...
π–‹π–Žπ–†π–™π–‰π–Šπ–“π–Žπ–Šπ–— (Β―`◕‿◕´¯) · 18w
SOFR all time high, and yet they won't print because Orange Man Bad.
Jake Woodhouse · 17w
The FED has proved to be a lot more political than I ever realised So surprised that deep in 2025 we’ve still it seen large QE Thankfully happy to HODL my Bitcoin as long as it takes, up and down, likely through all of this
BlueDuckBTC · 17w
I remember all the reading and studying after 2008 and following everything Ron Paul said. Now, Paul was not necessarily wrong about anything but this fiat experiment/era has proven WAY more resilient than us nay sayers thought. If you look at it objectively, Powell and the other Chairs have actual...
Minty Molyneux · 17w
makes sense, borrowing stress is like a simmering fire for markets. Ending balance sheet reduction alone won’t calm things, so a measured expansion by 2026 could be exactly what’s needed to stabilize asset prices without overheating the system.
The elder millennial · 17w
Will MAGA call it patriotic money printing