‘Big Short’ Investor Steve Eisman Says US Budget Deficit ‘Nothing To Talk About’ Due to Insatiable Demand for Treasuries - The Daily Hodl

robot
Abstract generation in progress

One of the investors who called and profited off the subprime mortgage collapse of 2008, Steve Eisman, is brushing off concerns over the rising US budget deficit.

In a new interview on CNBC, the Wall Street investor says the heavy demand for US treasuries from across the globe suggests there’s no cause for worry over the deficit.

“There’s a great slogan that I think really applies to politics and international affairs, which is when someone tells you who they are, believe them. But in the market, when someone tells you who they are, don’t believe them [until when] they actually do something with their money.

So all the people who are pontificating about this… The price of this risk is a 10-year Treasury yield. And what’s happened to the 10-year Treasury yield? It’s been directionless since December of 2022. So the more important question is given that all these people are pontificating about it, why hasn’t it moved? And again, I think the reason is there’s no alternative to Treasuries.

If there was a real alternative to Treasuries, then all of this stuff about the deficit is something that I would pay attention to. But as long as there’s no alternative, there’s nothing to talk about.”

Eisman also says the demand for US bonds all over the world is “insatiable” and that he believes investors will always show up in Treasury auctions to accumulate government debt.

Late last month, Eisman said he was optimistic about the stock market due to the long-term growth potential of the US economy.

“We’ve been in a bull market pretty much for the last 10 years with some fits and starts. And so buy the dip has become almost a religion. It’s a religion that right now I largely subscribe to because I am of the view… that the US economy is more dynamic than it’s ever been in my lifetime. So long term, I am very bullish.”

Follow us on X, Facebook and Telegram

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

Generated Image: Midjourney

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)