There's been a massive selloff in the bond market and rates are rising globally. Japan, Korea, the UK... You name it. Gita Gopinath — Harvard economics professor and the former first deputy managing director of the IMF — has long warned that bond markets are "in a fragile place." She sees a combo of demographics, high levels of public debt, and the intense capital needs of the AI boom creating inflationary pressure all around the world. Today we speak with Gopinath about the seeming disconnect between stocks and bonds and why investors may be wrong to assume that governments will have their back the next time there's a major shock. Chapters: 00:00:00 - Cold Open 00:01:04 - The Bond Market Selloff 00:03:30 - Guest Introduction: Gita Gopinath 00:03:56 - Gopinath's Market Assessment 00:06:11 - What Changed Post-2020 00:08:56 - AI's Crowding Out Effect 00:12:57 - Two Models of Crowding Out 00:14:35 - Policy Implications 00:17:35 - The Disinflationary AI Boom Scenario 00:21:42 - Global Savings Dynamics 00:23:27 - Index Fund Dynamics Sidebar 00:25:06 - Resource Nationalism and Trade 00:28:11 - Fiscal Space and Political Reality 00:31:57 - Debt Crisis in Reserve Currency Countries 00:34:12 - Central Bank Intervention Limits 00:36:37 - Economic Resilience Factors 00:39:26 - The "Bliss Trade" 00:42:21 - China's Economic Role 00:45:52 - Crisis Catalysts 00:47:39 - Closing Remarks Watch Bloomberg Vodcasts: https://www.youtube.com/playlist?list=PLe4PRejZgr0MS0Tqk_zQl1LVVTdWuH2Di Watch more Odd Lots episodes: https://www.youtube.com/playlist?list=PLe4PRejZgr0OJbRzA6nWybYiThLJd_ouz Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets. Join the conversation: discord.gg/oddlots Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts Check out more Odd Lots: https://youtube.com/playlist?list=PLe4PRejZgr0MuA6M0zkZyy-99-qc87wKV Get the Odd Lots newsletter: https://www.bloomberg.com/account/newsletters/oddlots And for all things Odd Lots, visit https://www.bloomberg.com/oddlots #Investing #Markets #Finance #Bloomberg #Podcast #OddLots Visit us: https://www.bloomberg.com/podcasts For coverage on news, markets and more: http://www.bloomberg.com/video Visit our other YouTube channels: Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg