'Big Short' investor Steve Eisman: Deep down Fed's Powell is 'petrified' of redoing Volcker again

Steve Eisman, Neuberger Berman senior portfolio manager, joins 'Squawk Box' to discuss the state of the economy, the hot jobs data and impact on the Fed's rate path decision, latest market trends, and more.

[kortyEdna]

Really where are investors putting their cash? Isn’t it crazy how mortgage rates continue to rise with higher imports and declining exports, but the FED is yet to lessen cost. Something will eventually break if they keep raising interest rates and quantitative tightening.

[lawerencemiller]

First of all, this whole economic chaos was powered by optimism that the FED is done with hiking interest rates. Now that interest rate crash is the situation, where do we go from here? How would you advise I safely allocate $250k funds at this point?

[shammuk]

Steve Eisman is actually the only guest on this show that knows what he is talking abt and has been right abt everything

[andrerodriguez]

Most short sellers never admit they are wrong till they are gone also. Good example, most of the big short sellers on Tesla were wrong, now they are gone. Eisman is the only short seller I heard, he’s not shorting stocks any longer, and is long. I applaud him for this.

[Allaiya.]

They shouldn't cut rates contrary to what businesses and investors are pushing. That would just spur more inflation

[lonzo]

Maybe I'm mistaken, but given Eisman's intellect and his success, AND his integrity, I tend to give him more of my attention than almost any other money manager, fund manager, or economist.

[geraldt]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

[CallmeMasta]

Steve's simple, mature and calm point of view on the economy is like no other.

[syedarmaghanhassan]

He is so wise.. especially the last sentence.. makes perfect sense.. why would you cut rates, if the economy is booming, instead of receeding? Why? There is no reason for a cut; they shouldn't cut; and they won't.
The stock market would rather have to cool down in anticipation of that, means, put your boots on dear Hawks, a buying opportunity is approaching us after February... a correction is coming. 😊

[goodneighborsnetwork]

Everything is fine. The cost of groceries, gasoline and rent have doubled but everything is fine. "We have no negative data points?" What? Maybe if you bought your own groceries and pumped your own gas, you'd see the negative data points. What a joke and unsustainable. This is what inflation does, it devastates the middle class.

[hushbash]

This whole rally was as a result of optimism that the Fed is done with hiking interest rates, btc eft and approvals. The question now is, where do we go from here? Are we seeing a cycle of long term gains until Q2 2024? let’s say I decide to throw In $50k? Good or bad timing?

[word]

Been at Ups for 25 years now and i have never seen volume this low. After announcing 12000 lay offs last Tuesday, I dont see sunshine and roses up ahead. Fyi that 12000 is more like 50000. They are closing facilities left and right and building automated hubs that barely need employees. The thing is, those new hubs are 100 miles away from the old facilities. People are just going to quit rather than travel that far for work. So about 35000 employees are going to self terminate. We have about 15 people at work who live in their cars because they can't find affordable housing. So if times are so great right now, imagine when it does finally hit the fan.

[corvinlord]

He's right. There is nothing to talk about.

[MarvishaN]

The market has been on a tear over the last month on hopes for a dovish pivot from the Fed, but investors like me have seen this movie before, whereby i'm left pondering if to sell off 30% of my $450k portfolio which comprised of plummeting stocks or hold on.

[anujanshankaran]

Its simple, Powell is slightly confident, he is waiting for the 120% feeling, once he gets that he'll cut rates. Makes sense right?

[bolognaandeggs]

Love Steve's views on the economy. Watch every interview he has.

[craptacular]

That last point is exactly right. Everyone is betting on rate cuts, but if the economy is doing fine, then there's no reason to cut. The only reason to cut right now is if the economy isn't doing fine and the numbers are getting fudged to make it look okay.

[bassfan]

The hosts are so desperate for negative talking points its hilarious. Steve keeps his cool and gives candid answers.

[NirthUK]

Well MMT had people saying we could keep interest rates low indefinitely, but guess what as soon as inflation spikes and this excess liquidity and money printing has spilled out into the economy and prices, suddenly rates are having to rise. So it's not really the case people have been wrong for 40 years. With revisionist powers like China, India, and Russia, using other currencies to trade, de-dollarization is happening in real time.

[MissMyMusicAddiction]

we need more Steve.
agree, or don't (i generally don't, including in this case). can we acknowledge that some guests just have much bigger brains, and their opinions should be on CNBC's youtube channel, more?