Steve Eisman, renowned for his portrayal in the film "The Big Short," recently expressed his desire for the public to stop discussing U.S. debt issues. Eisman, known for shorting the housing market during the 2008 financial crisis, believes that concerns over the budget deficit might be overstated.
He suggests that the noise surrounding U.S. debt could be from those attempting to replicate his past success. Eisman, describing himself as an optimist, pointed to the 10-year U.S. Treasury yield, a benchmark for government bonds, which has shown significant fluctuations amidst concerns over tariffs and fiscal policies.
Despite projections by the Congressional Budget Office that the tax and spending bill could add nearly $3 trillion to the deficit over the next decade, Eisman notes that the 10-year Treasury yield has been relatively stable since 2022. This stability indicates that the market has not lost significant confidence in U.S. fiscal conditions.
Eisman argues that without a viable alternative to U.S. Treasuries, the deficit concerns are less pressing. Market demand for U.S. Treasuries remains strong, as evidenced by recent auctions.
While Eisman gained fame for his bearish stance on the housing market in 2008, he has adopted a more optimistic outlook in recent years, citing favorable factors like artificial intelligence.
