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Secretary Bessent Outlines Reality of Capital Markets Making the Strait of Hormuz Irrelevant
['B. Masuda', 'Big Al Brown', 'Muley Bulley', 'Patrick Geagan', 'Sunriver Patriot', 'Chad C', 'Charles J Stevens Jr', 'Gulag Escapee', 'My Magic Wand', 'John Chisum']
The Last Refuge
Treasury Secretary Scott Bessent gets it.
When asked about the Strait of Hormuz, Bessent notes that yes, things will likely never return to the way they were before; however, there is a distinction that must be applied.
Capital markets respond to risk in the medium and long term; risks are always mitigated.
With the Strait now identified as a strategic risk, the emphasis will be on forever neutralizing that risk and avoiding the issue in the future.
Bessent gets it: markets don’t absorb coercion; they arbitrage it away.