Billionaire Investor: US Treasury Buybacks Hurt Credibility
- Billionaire investor Stanley Druckenmiller criticized Treasury Secretary Scott Bessent's decision to increase bond buybacks to $4 billion, arguing governments cannot indefinitely fight market fundamentals.
- Rising borrowing costs, which recently hit their highest level since 2007, prompted the Treasury's intervention. Federal debt recently hit the $40 trillion mark for the first time.
- The 10-year Treasury yield has risen 50 basis points this year to 4.70%, influencing borrowing costs across the economy. Druckenmiller argued this reflects nominal growth rather than restrictive conditions.
- Writing in The Wall Street Journal, Druckenmiller warned that "governments defending prices against fundamentals always lose." He added that artificial suppression removes fiscal pressure on politicians.
- While the 30-year yield recently hit 5.335%, analysts suggest bond buybacks may only temporarily cap rising yields. Market direction remains structurally upward despite intervention.
39 Articles
39 Articles
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Over the last month, he has engaged in two controversial and rare interventions in financial markets. The first came in early August when the U.S. Treasury joined the government of Japan in its efforts to strengthen the yen by buying the Japanese currency, taking a step it had last taken during the Asian Financial Crisis in 1998. And late last week, Bessent announced that the Treasury could double the amount of long-dated Treasuries that it will…
Druckenmiller Just Turned On His Own Protege, and Bond Investors Should Take the Hint
Stanley Druckenmiller trained Scott Bessent in the art of macro investing, which makes his public attack on Bessent's bond buyback program something bond investors cannot afford to dismiss as a political quarrel.
Billionaire Stanley Druckenmiller criticizes the debt policy of his former beggar, the American finance minister Scott Bessent.
Breitbart Business Digest: What Druckenmiller Gets Wrong About Treasury Buybacks
Stanley Druckenmiller thinks we should listen when the bond market speaks. His recent opinion column in the Wall Street Journal, however, demonstrates that listening is not enough. You also have to understand the language of the market. The post Breitbart Business Digest: What Druckenmiller Gets Wrong About Treasury Buybacks appeared first on Breitbart.
Bessent mentor Druckenmiller pans bond buybacks
The chorus of voices criticizing US Treasury Secretary Scott Bessent’s bond buyback strategy grew Tuesday, with the harshest rebuke yet coming from a former mentor. “Governments defending prices against fundamentals always lose,” investor Stanley Druckenmiller argued — with the help of AI — in The Wall Street Journal. “The only variable is how much they spend before conceding.” Bessent has indicated the operations will continue, but they “lack t…
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