‘Big Short’ Investor Michael Burry Warns of Extended Multi-Year Recession in US – Economics Bitcoin News
Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, has warned about “an extended multi-year recession” in the U.S. He believes there isn’t a strategy to pull us out of “this real recession.”
Michael Burry’s Recession Warning
Famous investor and founder of investment firm Scion Asset Management, Michael Burry, has warned about a “real recession” that will last multiple years.
Burry is best known for being the first investor to foresee and profit from the U.S. subprime mortgage crisis that occurred between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis about the mortgage crisis, which was made into a movie starring Christian Bale.
The Big Short investor tweeted about a recession Tuesday. He wrote:
What strategy will pull us out of this real recession? What forces would pull us so? There are none. So we are really looking at an extended multi-year recession. Who is predicting this? There are none.
Burry has warned about a recession several times in the past. In May, the Big Short investor cautioned about a looming consumer recession and more earnings trouble.
In April, he said that the Federal Reserve “has no intention of fighting inflation,” adding that “The Fed’s all about reloading the monetary bazooka. So it can ride to the rescue & finance the fiscal put.”
NYU professor Nouriel Roubini, who is sometimes known as Dr. Doom, replied to Burry, tweeting: “Some of us have been predicting a long and severe recession and made a detailed case for why we are headed towards a Great Stagflationary Debt Crisis.” In another tweet, he wrote:
I have myself argued all year that the coming recession will not likely be ‘short and shallow.’
This week, Tesla CEO and Twitter chief Elon Musk also warned about a severe recession. He urged the Federal Reserve to cut interest rates “immediately,” emphasizing that the Fed is “massively amplifying the probability of a severe recession.”
Do you agree with Michael Burry about an extended multi-year recession? Let us know in the comments section below.
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