### Comment:
Fed's reducing it's balance sheet by 50 billion every month for the next three years. That money has got to come from somewhere. Contrary what some on this sub think, you can have an economic contraction without a bear market, and a bear market without a contraction. Markets are about capital flows.

### REPLY:
It’s not new money when they reduce the balance sheet. They continue to pay off notes at maturity (as they always do) and slow down the rate of selling new ones.

### END.