00:00The words of Druckenmiller this morning in the Wall Street Journal, I imagine you share them.
00:03Ultimately, it's a view shared by so many that we have a structural issue and it's a structural
00:08solution. Do you see the intervention from the Treasury Secretary as simply just a Band-Aid?
00:14Absolutely. Look, I think that a lot of what we're hearing from Treasury right now is absolutely
00:21politically motivated. I think there have been comments already about the strange timing
00:29of this announcement coming two weeks after the official Treasury refunding announcements,
00:38three weeks after the yen currency market intervention, and ending exactly one day after
00:47Election Day. So, look, jawboning can get us just so far with regard to squeezing out the shorts,
00:56if you will. And Secretary Besant is a former hedge fund manager, so he knows about
01:04doing battle with trading desks. But I just don't think it's enough when you're talking about the
01:09global Treasury market. Lisa, we've got some issues in the Treasury market. Do you think it's a problem
01:14for stocks or not? Well, it hasn't been. And that has been,
01:19you know, I think one of the surprises here, we've kind of forcefully come through 4.5% on the
01:2810-year
01:28Treasury. It really hasn't stopped stocks. And that was really for the past three, three and a half
01:36years of this bull market. That had been the sensitivity point. Folks are now resetting that
01:41bar higher, saying, well, maybe it's 5% on the 10-year. I mean, what's extraordinary about this
01:49cycle and AI CapEx that's cowering it is how interest rate insensitive that CapEx spending is.
01:58And so, thus far, we have not seen rates put a break on these equity markets. I personally do think
02:07that the reckoning around at least multiples, valuation multiples, is coming if in fact, you know,
02:15this 10-year pushes forcefully through, you know, 4.75 on its way to 5%.
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