Jim Chanos says there’s something wrong with the stock market when rates this low cause panic

  • Prominent short seller Jim Chanos says he’s concerned about the fragility of the stock market in response to increases in interest rates.
  • “One of the things that worries me is just how fragile we seem to be to small rises in interest rates,” Chanos told CNBC’s Sarah Eisen.
  • While government debt rates rallied for much of 2018 — sometimes sharply — borrowing costs are still far below historical norms.

Prominent short seller Jim Chanos is troubled by the fragility of the stock market, telling CNBC on Thursday that recent equity sell-offs in response to modest increases in borrowing costs isn’t a healthy sign.

“One of the things that worries me is just how fragile we seem to be to small rises in interest rates,” Chanos told CNBC’s Sarah Eisen. “If I were to tell you that nominal GDP growth recently was 6 percent, with record low unemployment — and good jobs numbers, good wage numbers — and you say ‘Gee! We’re having a problem with 3 percent interest rates,’ you’d say that’s — you know — what kind of fragility in the system?”

Chanos, who spoke from the Yale CEO Summit in New York, referenced the recent rise of the 10-year Treasury note yield above 3 percent.

www.cnbc.com/2018/12/13/jim-chanos-says-theres-something-wrong-with-the-stock-market-when-rates-this-low-cause-panic.html