Founders: Is Bessent Artificially Repressing Bond Vol

Yes he is.

Comment up front: Government loves to steer the dog by the tail any time there is a crisis. By doing that with volatility, a derivative of the actual asset, it gives the illusion of stability. They take an established correlation that markets trust as an indicator (the Vix before 2009), and cook it to be useless ( the Vix after 2009).

But what is really happening when they steer the market by its derivative is: They short circuit a free market’s self-corrective functions and replacing them with systemic risk.

It’s like taking pain killers that mask the symptoms to avoid the real problem. The problem gets worse untreated, and you get addicted to the pain killers. We are both now.

Cheers.