‘Big Short’ Investor Michael Burry Warns of Extended Multi-Year Recession in US – Economics Bitcoin News

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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.

Kevin Helms 

A stu­dent of Aus­tri­an Eco­nom­ics, Kevin found Bit­coin in 2011 and has been an evan­ge­list ever since. His inter­ests lie in Bit­coin secu­ri­ty, open-source sys­tems, net­work effects and the inter­sec­tion between eco­nom­ics and cryptography.




Image Cred­its: Shut­ter­stock, Pix­abay, Wiki Commons

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