Danny Moses interviews Larry McDonald, a former distressed credit trader at Lehman Brothers during the Global Financial Crisis (GFC) and author of 'A Colossal Failure of Common Sense' and 'How to Listen When Markets Speak.' Larry discusses his career, which includes transitioning from retail to institutional finance and experiencing firsthand the collapse of Lehman Brothers.
The Bear Traps Report founder Larry McDonald weighs in on the impact of geopolitical tensions on the markets, his hard asset picks and his outlook on treasuries.
Larry McDonald, The Bear Traps Report founder, joins ‘Squawk Box’ to discuss the latest market trends, state of the economy, Treasury yield trends, why he believes a ‘creeping financial repression’ may be ahead, and more.
“There’s a beast in the market,” says Larry McDonald, that “wants more meat.” He notes that after hitting the debt ceiling in January, we’ve “issued no new debt,” but after the ceiling is raised under Trump, he expects another major bond issuance. He sees creeping weakness in the economy and thinks we’ll see 50 basis points in rate cuts before year end. He also forecasts a major shift in the market from “paper assets” to “hard assets, including energy and materials critical for AI growth."
World Affairs in Context with Guest Larry McDonald, founder of the Bear Traps Report