Even before Corona, it was clear; the Fed can’t reduce the size of its balance sheet.

What you said in chart form – Fed's balance sheet vs Nasdaq. The only time the Fed attempted to return its balance sheet to pre-2008 levels led to the huge DEC 2018 sell-off. Even before Corona, it was clear; the Fed can't reduce the size of its balance sheet. pic.twitter.com/g5vTozEgnZ

— Peter Schmidt (The 92ers) (@The92ers) May 11, 2020

During recessions, the stock market capitalization has generally fallen down to the level of the broad money supply. 2003 was an exception; didn't get that far down.

This time it looks like the broad money supply is catching up as much as the market is falling. pic.twitter.com/8yGS95GGsJ

— Lyn Alden (@LynAldenContact) May 11, 2020

apple is just ridiculous pic.twitter.com/R0EFXO9nVH

— Alessio Urban (@AlessioUrban) May 11, 2020