Bloomberg Surveillance · Tuesday, August 25, 2026
Billionaire investor Stanley Druckenmiller has criticized Treasury Secretary Scott Besson's buyback plans, stating that governments defending prices against fundamentals always lose. George Concarvis of MBFG agrees, emphasizing that market forces should dictate bond yields and highlighting the government's persistent deficit issues. Concarvis believes the current high real cost of capital is largely due to AI spending and competition for capital, rather than a fiscal term premium.
“governments defending prices against fundamentals always lose. Let the bond market speak.”
“I look at the bond market and market forces should always kind of dictate where things head. And I think that is the right sort of course of action. But this is complicated. This is going to be a story that we're going to have. And we've had for years. We're going to have this into this election, into the 2028 election, into 2030. Like our deficits are not getting any better.”
“It's a function of the AI spending. So that's almost like quasi-government infrastructure spending that's competing now. We have competition for capital, which we have not had for 20, 30 years.”