Odd Lots Steve Eisman on Banks, AI and His Next Big Bet
44 snips
Jun 16, 2023 
Steve Eisman, a senior portfolio manager at Neuberger Berman and known for his timely bet against the housing market, shares his insights on current investment landscapes. He discusses the recent banking turmoil, believing it's manageable, and emphasizes the boom in AI technologies. Eisman reveals his focus on U.S. manufacturing and infrastructure, highlighting opportunities in revamping the electricity grid. He also addresses the challenges in tech investments and the evolving dynamics in real estate markets.
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Banking Crisis Misconception
- The banking crisis is not systemic, but rather affects specific banks with concentrated depositor bases.
- These banks, like Silicon Valley Bank, faced liquidity issues due to rising interest rates and mark-to-market losses on bonds.
Regulators' Oversight
- Regulators often overlook crucial research from Wall Street, leading to misdiagnosis of systemic risk.
- Relying on internal analysis instead of readily available research can exacerbate crises.
Regional Bank Lending Slowdown
- Regional banks are reducing lending due to the outflow of deposits into higher-yielding money market funds.
- This lending slowdown could accelerate if the Federal Reserve continues raising interest rates.
