The small and the medium banks are feeling the full effect of this. They have a long term duration bonds that they purchased and those things are underwater. And so there's almost like this slow motion crash happening where liquidity and deposits are flowing outside of these banks. I don't know how that gets solved. It feels like we may be band-aided the issue right now, but there are these long-term persistent issues.
Lyn Alden is one of crypto’s favorite macro commentators and also a frequent returning guest to the Bankless program. When Lyn comes on Bankless, you know it’s because Macro is confusing, and we need help navigating these chaotic waters.
Inflation! Bank run! Insolvency! Recession! Everyone’s yelling things! But what’s going to happen? Lyn has the answers.
------ ✨ DEBRIEF | Unpacking the episode: https://www.bankless.com/debrief-lyn-alden ------ In today’s episode, Lyn covers whether or not the Fed Balance sheet is expanding to infinity, what’s even on the Fed Balance sheet, how the Fed actually works, why a regional bank crisis might domino to the Dollar losing world reserve currency status, and how that same bank crisis might impact the 2024 US Election.
This is a Lyn Alden episode you don’t want to miss.
------ Topics Covered
0:00 Intro 5:09 Summary of Last Few Weeks 6:19 Speed Bump or Phase Change? 7:55 Nobody Knows What Happens Next 10:10 The Balaji to Ben Spectrum 18:14 Fed Balance Sheet Timeline 24:08 Run on the Fed? 31:05 U.S. Treasuries Value 41:31 Impact of the Economy Post-Sucking 47:31 Innovation Damper 49:18 Rethinking the Dollar’s Role in the World 52:52 Bull Case for Non-U.S. Dollar Supremacy 57:38 More Division in the Economy? 1:01:38 Loss of the Dollar? 1:08:00 Reserve Currency Predictions 1:12:47 Bitcoin Liquidity Profile 1:15:46 What Do We Do Lyn? 1:18:14 Is Crypto the Ultimate Tail Risk? 1:20:19 Closing & Disclaimers
------ Resources:
Lyn Alden Twitter https://twitter.com/LynAldenContact
Lyn Alden https://www.lynalden.com/
Links to our recent macro series https://youtu.be/pP_HHE0kFhA https://youtu.be/E8lxrsF29u0 https://youtu.be/-DzY_pCFGbI https://youtube.com/live/eregdZPLYjg
----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://www.bankless.com/disclosures
