— Win Smart, CFA (@WinfieldSmart) August 3, 2023
Good Morning Everyone! Billionaire hedge fund manager Bill Ackman is making a bold move! He's shorting 30-year Treasury bills using options, and he predicts yields could skyrocket to 5.5% 'soon'. His strategy is a hedge against the impact of long-term rates on stocks in “a world… pic.twitter.com/Wt5CcApS0h
— Genevieve Roch-Decter, CFA (@GRDecter) August 3, 2023
The Big Short for Billionaire investor Ackman is 30-year Treasuries
Prominent billionaire investor William Ackman warned of increasing risks in the U.S. economy as he revealed his hedge fund’s significant short position on U.S. 30-year Treasuries. He views this as a necessary protection against potential spikes in long-term rates that could harm the stock market. He fears a potential surge in 30-year Treasury yield to 5.5% in the near future, given the 4.16% climb on Wednesday – the highest of the year. Ackman points to escalating defense costs, energy transitions, and increasing labor power as factors fueling inflation, despite the Fed’s aggressive rate hikes.
The US government has no clue how high its debt interest payments will get… pic.twitter.com/JQ16slGGIz
— Swordfishvegetable (@Swordfishv44183) August 3, 2023
Fighting Inflation With Credit Cards: First Time in History US Credit Card Debt To Hit $1Trillion
American credit card debt has hit crisis levels. With average balances at a record $7,300 and median savings at only $5,300, delinquency rates are escalating for the sixth consecutive quarter, last seen in 2008. Total credit card debt has surged past $986 billion, with some states nearing $10,000 in average debt. Interest rates have peaked at 25% and may soon cross 30%. As living costs rise, Americans are increasingly borrowing, exacerbating this worrying debt situation.
30YR mortgage rate advances to 7.2%, 5/1 ARM now over 7% pic.twitter.com/V5T63gi4Ab
— Don Johnson (@DonMiami3) August 3, 2023
US State and Local Governments’ Worst Decline in Income Tax Revenues Ever Recorded
The year-on-year percentage fall is at a historical second-worst, surpassed only by the Great Financial Crisis. Alarmingly, federal tax receipts continue their downward trend, nearing an unsettling -10% on a year-on-year basis – a warning signal of the ongoing economic downturn. There is a stark contradiction between these indicators and the overvalued state of financial assets, highlighting an underlying and worsening economic situation.