Stanley Druckenmiller renders an unfavorable opinion of Treasury Secretary Scott Bessent's use of buybacks to defend against higher yields in a market that is functioning normally.
"I have spent five decades trading on a simple premise: Markets aggregate information no committee possesses, and prices are how that information reaches decision makers. The long-term Treasury yield is the most important price in the world. It is also the only fiscal disciplinarian the U.S. has left."
"Every basis point of artificial yield suppression is a subsidy to procrastination."
"Return buybacks to their stated purpose: small, scheduled, off-the-run liquidity operations announced at quarterly refundings, never off-cycle responses to yield levels. Term out the debt honestly and pay the price the market sets."
"If the 30-year must trade at 5.5% to clear, that isn’t a crisis. It is an invoice. Then do the only thing that durably lowers long-term yields: address the primary deficit."
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@StPaulSaints Good for Royce. Life is full of ups and downs, this may just be the confidence boost he needs. Hoping for a short, and last, stint in St Paul.
@BillSimmons@ChrisRyan77@AnthonyDabbundo I thought CR was more in the culture than “The Bain hole in Dark Knight Rises.” Audibly gasped, let’s get this man some Lazarus Pit literature.
@Jared_Carrabis What’s unreal is the amount of runs they’re giving up. In their last 14 wins- given up 2, 3, 1, 1, 4, 3, 2, 1, 5, 1, 0, 1, 2, 0. 1.86 per game. What a credit to the pitching staff/fielding, remarkable statistical turnaround.