Forward Guidance · Friday, August 7, 2026
The speaker posits that government entities are actively intervening to control market volatility, citing examples where they 'smash' or defend markets when they reach critical points. This intervention is seen as a deliberate strategy to prevent wider market disruptions, particularly in the bond market.
“And they come in and they smash it, defend, defend the Yen, sell the Euro.”
“I just think we crossed some Rubicon of volatility controlling where it moved from the Fed to the treasury.”
“So incredible about, uh, these moments is they do it almost perfectly. And we found out after the fact that Warsh and Bessen and Trump talked all the time. So they're literally watching the charts just like we are at the breaking point when skew kind of like goes nuts.”