Bankless · Friday, September 25, 2026
Legendary investor Howard Marks, in his latest memo, attributes the current rise in bond yields to three primary factors: stubbornly high inflation, unchecked fiscal discipline globally, and a significant capital demand squeeze driven by AI infrastructure buildouts. Marks argues that U.S. companies remain strong, but the underlying issue lies with U.S. fiscal management and the dollar's debasement, suggesting that cryptocurrencies could be a hedge against this trend.
“He said, Shall We Repeal the Law of Economics? And he gives reasons, three reasons for why yields are rising.”
“So number one, yields are rising because inflation is high. Stubbornly high, he calls it.”
“The problem we face isn't a problem with the U.S. stock market or with U.S. companies. The problem is with the U.S. fiscal management. And ultimately, it's a problem with the U.S. dollar.”