- The US economy might fall into recession if interest rates continue to rise.
- The subprime mortgage crisis of 2007 and 2010 is what Burry is most known for.
The “Big Short” Michael Burry and others have warned that the stock market’s present decline may continue for a long time. According to these long-term investors, who fully anticipated asset values to fall, the US economy might fall into recession if interest rates continue to rise and inflation remains resistant.
On Friday, Michael Burry, a well-known investor and the founder of Scion Asset Management, issued a dire warning about the impending consumer slump and the prospect of more profitability difficulties.
Numbers Don’t Lie
The subprime mortgage crisis of 2007 and 2010 is what he’s most known for, and he profited greatly from it. He is included in Michael Lewis’s book, “The Big Short,” adapted into a film starring Christian Bale concerning the mortgage crisis.
Burry made the following statement:
“US Personal Savings fell to 2013 levels, the savings rate to 2008 levels – while revolving credit card debt grew at a record-setting pace back to the pre-Covid peak despite all those trillions of cash dropped in their laps. Looming: a consumer recession and more earnings trouble.”
Twitter users praised Burry for highlighting the matter and urged others to do the same. People agreed that “numbers don’t lie,” and the US economy looks as bad as Burry said.
More and more experts, including Tesla CEO Elon Musk, Rich Dad Poor Dad author Robert Kiyosaki, and Goldman Sachs senior chairman and former CEO Lloyd Blankfein, have lately warned that a recession is either here or coming. The crypto market has been on a downward trend for a prolonged period, with signs of a recovery looking weak.
