'Big Short' investor Steve Eisman is begging people to stop worrying about the US debt
"The Big Short" investor said he was tired of being asked about his outlook for the US debt, and that the budget deficit is probably fine . He said the noise now is probably from people who are trying to replicate the success of investors, including himself, who successfully bet against the housing market in 2008.
"You know what I have to say about all this? Just stop. God's sake," Eisman said when asked about the US debt on CNBC this week. "I'm going to say this. Maybe it's a little too obnoxious, but I can't help myself. It's just so — how many times do I get this question? People want to be me. They want to predict the end of the world. And I have news for all of them. The position of Steve Eisman is taken."
Eisman, who is best-known for betting against the housing market during the 2008 subprime mortgage crisis, described himself as an optimist. Speaking on the budget deficit, he pointed to the 10-year US Treasury yield, which is the benchmark government bond.
The 10-year yield has whipsawed this year amid concerns about President Donald Trump's tariffs and the GOP tax and spending bill, which is expected to add nearly $3 trillion to the deficit over the next decade, according to the Congressional Budget Office.
But the yield has been mostly "directionless" when viewed since 2022, Eisman said. That's a sign that the market isn't seriously losing faith in the US fiscal position.
"Again, I think the reason is there's no alternative to Treasurys. If there was a real alternative to Treasurys, then all this stuff about the deficit is something I would pay attention to. But because there's no alternative, there's nothing to talk about," Eisman added.
Markets have paid close attention to the demand for US Treasurys, as weak demand could signal investors no longer view the bonds as safe-haven assets. But demand at recent Treasury auctions has mostly been strong, including for the latest 10-year Treasury auction on Wednesday.
While he's most famous for his bearish call on the housing market leading up to 2008, Eisman has been more upbeat lately.
In a previous interview, Eisman said he had de-risked some of his portfolio but remained , given tailwinds like AI.
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