Prof G Markets · Thursday, September 24, 2026
Legendary investor Howard Marks argues that the Treasury's bond buyback program is merely a cosmetic fix for America's economic problems, stating that it will not solve a structurally unsound situation. He attributes the rise in yields to stubborn inflation, a growing national debt of $40 trillion, and high demand for capital. Marks highlights that inflation has remained above the Federal Reserve's 2% target for five years, with recent geopolitical events further exacerbating the issue.
“In his new memo, legendary investor Howard Marks argues that the Treasury's response was a cosmetic fix to America's economic problems. He says that buybacks will not solve a situation that is structurally unsound.”
“I think the main reasons why rates are going up is because number one, inflation is stubborn and it has stubbornly been above the Fed's 2% target for for, you know, for the last five years.”
“And now with the impact of the war raising oil prices, it's up to 3.4 or something like that. Uh, that's the main reason. People want inflation protection.”