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.”

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Investor Steve Eisman, who took short positions against the housing market leading up to the 2008 crisis, is sounding the alarm over an event that could trigger a collapse in the stock market.

In a new video on his own YouTube channel, Eisman says that he continues to be long-term bullish on the US stock market, noting that the US economy is in the best position to witness growth and innovation in decades.

But Eisman cautions that escalating geopolitical tensions could obliterate the US economy’s growth potential, sparking a big stock market sell-off.

“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. 

However, the one thing that I worry about is the potential trade war. And here, it’s in no one’s interest for there to be a trade war. But just like in World War I, it was in no one’s interest for there to be a World War I. But because of the reciprocal treaties that countries had, they fell into it. 

I think it’s still possible that there’s a trade war. I don’t know how to handicap it. That is really the only risk in the market. 

As long as there’s no trade war, I’d buy every single dip. If there is a trade war, however, you would see a very big correction.” 

As of Friday’s close, the S&P 500 is trading at a new all-time high of 6,173 points.

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Legendary investor Steve Eisman is warning the public about the possible emergence of a “cartel” of major banks in the US, which he says could impact the cost of financial services.

The Wall Street veteran notes in a new interview with The Compound that there hasn’t been a wave of mergers and acquisitions (M&A) in the banking sector since the 1990s.

“It’s been very much discouraged post Dodd-Frank, so you’ve had very, very little M&A. But I actually think as a country we need [a wave of M&A]. And the reason why I say that is here’s an interesting statistic: in 2007, JPMorgan’s share of deposits in the United States was 7%, today it’s close to 14%. 

Now, there are a couple of reasons for that: number one is the cost of regulation is very, very high, and they can bear that more easily, and number two, which is probably even more important, is the cost of technology has exploded, and you need to be really big so you can pay for it.

So if we do nothing and we keep the current policies and there’s no M&A wave, what’s going to happen is JPMorgan, Wells Fargo and a handful of others will continue to take market share, the other regional banks are going to wither on the vine, and what you’ll have left is a couple of very, very large banks and some community banks.”

Eisman, whose bet against the housing market was famously profiled in parts of Michael Lewis’ book “The Big Short,” says financial institutions like US Bank and Comerica should merge to compete with the giant firms.

“I don’t want to be Canada, where it’s basically a cartel, and so therefore those banks get to charge a lot more to customers.”

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Wall Street veteran Steve Eisman is highlighting one concern he has about the stock market.

In a new CNBC interview, the investor who predicted the US housing bubble in 2007/2008 and was subsequently profiled in The Big Short movie says tariffs are his “one concern.”

“That’s it. I mean the market’s gotten pretty complacent about it. But you know in any trade negotiation the details really matter and I think negotiating with Europe about tariffs is incredibly complicated because each country effectively has a veto on any issue that it wants, that thinks it’s important.

And I don’t know what’s going to happen with China. I just don’t know how to handicap this because there’s just too many balls in the air. So I mean I’m long only, I’ve taken some risks down and I’m just sitting pat.”

Citing the recent results of artificial intelligence (AI) chipmaker NVIDIA, where revenues jumped 69% quarter-on-quarter, Eisman says a trade war could make the rapid growth of the AI sector irrelevant over the short term.

“Those numbers were wild… when you think about it… what is this? A $3 trillion company whose revenue grew 69%? It’s unbelievable when you think about it. It’s insane.

So, I just think the AI revolution is early. But if, god forbid, there’s a trade war, none of that will matter in the near term. It just won’t.”

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Steve Eisman says he’s taking a wait-and-see approach to the stock market right now.

In a new interview with CNBC, the famous investor notes he’s dialed down the risk in his personal portfolio.

“I’m waiting. I think we’re going to have volatility for quite a while. The Trump Administration has set up a situation where they’re going to be negotiating with multiple countries on multiple issues. It’s not going to take a couple of weeks, it’s going to take a few months, so I think, for the time being, volatility’s going to be here for a while.”

Eisman, who’s known primarily for betting against the housing market prior to the American subprime mortgage crisis, says stocks like Nvidia (NVDA) and Apollo Global Management (APO) have “strong long-term fundamentals” and are primed to make investors money over multi-year timeframes, though he’s less certain about the shorter term.

“I would not even hazard a guess as to what any stock will do over the next few months, simply because we’re in the type of market where… there’s only one variable that matters, and right now the variable that matters is the president of the United States, and I can’t handicap that right now.”

In terms of NVIDIA specifically, the famed investor says it’s only “the early innings of the AI revolution,” and he predicts the tech giant still has room to grow.

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