Goldman's Solomon: 10-Year Treasury Yield 'Doesn't Scare Me'
- Treasury yields at a 24-year high, but Goldman's boss says 'meh'—because record fees and free leverage make it feel like a vitamin, not a threat.
- Solomon's 'resilient economy' = tech bros buying AI toys on margin while your rent eats your paycheck.
- Forget the bond market; the real horror show is the Fed pretending 'transitory' means 'until we cash out.'
- Wall Street's top banker insists the 'tech supercycle' is real—translation: they've found a new way to sell your data back to you.
- Friendly regulatory environment? Sure, if you consider the SEC a lapdog with a broken leash.
Brief Summary
Goldman Sachs CEO David Solomon channeled his inner haunted-house tour guide, declaring a 24-year high in 10-year Treasury yields as nothing more than a drafty breeze. He assures investors that the economy is so resilient it practically jogs—thanks to a 'tech supercycle' and what he generously calls a 'friendly regulatory' climate. Meanwhile, the rest of us are trying to figure out if a 7% mortgage is a discount or a life sentence. Solomon's nonchalance is adorable, especially since his profits don't depend on paying those yields—just on selling you the rope. The bond market might be screaming, but in Goldman's world, that's just the sound of bonuses being calculated.
Why This Matters
For the average reader, this is a stark reminder that Wall Street's comfort zone is not your comfort zone. When the head of Goldman says high yields don't scare him, he means they don't scare his balance sheet—your 401(k), mortgage refi, or credit card APR will feel every basis point. His 'resilient economy' is a tale of two cities: one where AI startups get funded at record valuations, and another where your grocery bill is a cliffhanger. Politically, expect politicians to wave these 'strong economy' remarks like a flag while ignoring the underlying pain of elevated borrowing costs. The takeaway? If the guy selling umbrellas says the rain is 'refreshing,' you might want to check the flood forecast.