Karen Finerman

And so people buy US dollars and they buy treasuries. They might buy short term, they might buy the 10 year, for example, and That's usually what happens in a crisis. That did not happen in this crisis. In fact, the reverse happened. So there was selling in treasuries. We saw the 10-year yield. When people sell the bonds, yields go up.

They need to, you know, if you want to entice more people to buy those bonds, you have to pay more interest. So that worked the opposite way that we would have seen. And so when you have people from around the world, let's just use the example of Chinese sellers. I don't know how much of the selling was Chinese sellers, but they own hundreds of billions of dollars of bonds, $750 billion of bonds.

They need to, you know, if you want to entice more people to buy those bonds, you have to pay more interest. So that worked the opposite way that we would have seen. And so when you have people from around the world, let's just use the example of Chinese sellers. I don't know how much of the selling was Chinese sellers, but they own hundreds of billions of dollars of bonds, $750 billion of bonds.

They need to, you know, if you want to entice more people to buy those bonds, you have to pay more interest. So that worked the opposite way that we would have seen. And so when you have people from around the world, let's just use the example of Chinese sellers. I don't know how much of the selling was Chinese sellers, but they own hundreds of billions of dollars of bonds, $750 billion of bonds.

So they sell their 10-year bond. You get dollars back for the bond. They sell those dollars. So you have this effect of the bonds going down and the dollar going down, which is the opposite of what you thought would happen. In addition, there was this giant levered basis trade on that had people... Buying the 10-year, selling the 30, and they have to get out.

So they sell their 10-year bond. You get dollars back for the bond. They sell those dollars. So you have this effect of the bonds going down and the dollar going down, which is the opposite of what you thought would happen. In addition, there was this giant levered basis trade on that had people... Buying the 10-year, selling the 30, and they have to get out.

So they sell their 10-year bond. You get dollars back for the bond. They sell those dollars. So you have this effect of the bonds going down and the dollar going down, which is the opposite of what you thought would happen. In addition, there was this giant levered basis trade on that had people... Buying the 10-year, selling the 30, and they have to get out.

That was sort of on top of it in a chaotic market. And then you had one more thing, the Japanese yen trade, which has been on for years, which is people... They take that money by dollars, by treasuries. Well, that started to unwind when China, when Japan started to raise interest rates and the yen appreciated. And then there's this question mark of, is the U.S. going to remain the reserve?

That was sort of on top of it in a chaotic market. And then you had one more thing, the Japanese yen trade, which has been on for years, which is people... They take that money by dollars, by treasuries. Well, that started to unwind when China, when Japan started to raise interest rates and the yen appreciated. And then there's this question mark of, is the U.S. going to remain the reserve?

That was sort of on top of it in a chaotic market. And then you had one more thing, the Japanese yen trade, which has been on for years, which is people... They take that money by dollars, by treasuries. Well, that started to unwind when China, when Japan started to raise interest rates and the yen appreciated. And then there's this question mark of, is the U.S. going to remain the reserve?

Is the U.S. dollar going to remain the reserve currency of the world? I think so. But the idea that that's even a question right now is scary. So... A lot of things going on. Plus one other thing, which is in the last year or so, there's been a move out of some U.S. equities into other countries, mostly Europe, because the valuation differential has gotten so huge that we talk about U.S.

Is the U.S. dollar going to remain the reserve currency of the world? I think so. But the idea that that's even a question right now is scary. So... A lot of things going on. Plus one other thing, which is in the last year or so, there's been a move out of some U.S. equities into other countries, mostly Europe, because the valuation differential has gotten so huge that we talk about U.S.

Is the U.S. dollar going to remain the reserve currency of the world? I think so. But the idea that that's even a question right now is scary. So... A lot of things going on. Plus one other thing, which is in the last year or so, there's been a move out of some U.S. equities into other countries, mostly Europe, because the valuation differential has gotten so huge that we talk about U.S.

exceptionalism and how great this country is to do business and rule of law and all of that great capital markets, all of that. But the EU had underperformed for so many years and the U.S. markets had done well. The value proposition changed. So money started to leave the U.S. having nothing to do with tariffs. This this predates Trump's election.

exceptionalism and how great this country is to do business and rule of law and all of that great capital markets, all of that. But the EU had underperformed for so many years and the U.S. markets had done well. The value proposition changed. So money started to leave the U.S. having nothing to do with tariffs. This this predates Trump's election.

exceptionalism and how great this country is to do business and rule of law and all of that great capital markets, all of that. But the EU had underperformed for so many years and the U.S. markets had done well. The value proposition changed. So money started to leave the U.S. having nothing to do with tariffs. This this predates Trump's election.

Prices go up. That's sometimes confusing if you're new to it.

Prices go up. That's sometimes confusing if you're new to it.

Prices go up. That's sometimes confusing if you're new to it.

And then the dollar goes up.