Steve Eisman is not afraid of a recession. Here’s why investors should pay attention.

While financial markets are panicking over the decline in bank stocks and cycles of interest rate cuts, legendary short seller Steve Eisman from Neuberger Berman remains calm. This week, JPMorgan fell by 5%, and Ally Financial by 17% following weak earnings forecasts and rising credit issues.

Eisman: banks are in good shape, capital ratios are high, they understand their risks better than before. However, investment banks are a completely different story.

What about the Fed? Eisman expects a 25 basis point rate cut, but says that the central bank's short-term moves are not critical for long-term investors. According to CME FedWatch, the market estimates the probability of such a cut on September 18 at 85%.

Notice: low-income consumers are indeed suffering from inflation (, the 25% drop of Dollar General in a day confirms this ). But Eisman is skeptical — this is not a systemic problem like in 2007-2008. People simply cannot cope with rising prices, rather than being deeply in debt.

Conclusion: if the short seller is calm, perhaps we should also remain cool-headed?