David Solomon

So I'm one that's in the camp that that's a possibility.

But unless you create that on a sustained basis where you have higher real growth and you control inflation, you know, we're setting ourself up at some point for some big speed bumps.

I'm not surprised on either side of the aisle.

Both sides have been poor fiscal stewards.

And it continues because the politics, you know, play well until there's real pressure that forces, you know, a different kind of political discipline.

So I'm not surprised now if if this administration can marry it with better growth.

For a period of time, we we might wind up in a place where the overall debt to GDP looks better, more attractive.

But the long term trajectory is both sides of the aisle are not showing an ability to show fiscal discipline.

And we haven't yet been able to crack the code of higher growth to justify the spending levels and the debt levels.

And so, you know, these are things that we have to wrestle with.

A lot of talk about monetary policy.

You know, you'd notice that the policy rates down 1% in 2025, but the 10-year really didn't move.

Stayed kind of stuck over the entire year between 4.1 and 4.2%.

You'd notice in 2024, you know, we saw interest rate cuts, but you actually saw a steepening of the curve and long rates moved up a little bit.

So, you know, the market is telling you that, you know, proceed with caution.

And, you know, I think in the short run,

We have a tremendous ability, because of the headroom we have, because of the dollar, to be less concerned about this.

But ultimately, these are issues we're going to have to wrestle with, in my humble opinion.

You know, I think at the margin, Scott, you can see moves around treasuries, but vulnerable is a big word, and vulnerable to me, and correct me if you're not thinking about it in this, when you say vulnerable, the fundamental structure of the world

is that for lots of people in the world that have excess reserves, there's not a lot of places they can go.