- Burry is well-known for predicting the 2007–2010 U.S. subprime mortgage crisis.
- Elon Musk, CEO of Tesla and Twitter, also predicted a devastating recession this week.
Michael Burry, the founder of the investing company Scion Asset Management, has predicted the coming of a “real recession” that would persist for many years. Burry is well-known for predicting the 2007–2010 U.S. subprime mortgage crisis and making money off of it.
The movie “The Big Short,” starring Christian Bale, is based on Michael Lewis’s book of the same name on the subprime mortgage crisis. The investor from “The Big Short” mentioned a recession on Twitter yesterday.
“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.”
Long and Severe Recession
Burry has often predicted a downturn in the economy. The investor voiced concerns about a consumer downturn and more profitability issues back in May. 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.”
The NYU professor and self-proclaimed “Dr. Doom” Nouriel Roubini tweeted in response to Burry, “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.”
Elon Musk, CEO of Tesla and Twitter, also predicted a devastating recession this week. He emphasized that the Federal Reserve is “massively amplifying the probability of a severe recession” and called on the Fed to reduce interest rates “immediately.”