Hedge fund manager Michael Burry, famous for predicting the financial crisis in 2008, has warned of “a protracted recession of several years” in the US. He believes there is no strategy to pull us out of “this real recession”.
Michael Burry’s recession warning
Well-known investor and founder of the investment company Scion Asset Management, Michael Burry, has warned of a “real recession” that will last for several years.
Burry is best known for being the first investor to predict and profit from the US subprime mortgage crisis that took place 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 film starring Christian Bale.
The Big Short investor tweeted about a recession on Tuesday. He wrote:
What strategy will pull us out of this real recession? What forces will pull us this way? There is nobody. So we are really looking at an extended multi-year recession. Who predicts this? There is nobody.
Burry has warned of a recession several times in the past. In May, the Big Short investor warned of a looming consumer recession and more earnings problems.
In April, he said the Federal Reserve “has no intention of fighting inflation,” adding that “The Fed is about reloading the monetary bazooka. So it can help and fund fiscal policy.”
NYU professor Nouriel Roubini, who is sometimes known as Dr. Doom, responded to Burry, tweeting: “Some of us have predicted a long and severe recession and made a detailed case for why we are headed for a major stagflationary debt crisis. » In another tweet, he wrote:
I myself have been arguing all year that the coming recession is not likely to be “short and shallow.”
This week, Tesla CEO and Twitter CEO Elon Musk also warned of a severe recession. He called on the Federal Reserve to cut interest rates “immediately”, stressing that the Fed is “massively increasing the likelihood 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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