Hedge fund manager Michael Burry, famous for forecasting the 2008 financial crisis, has warned of “a protracted multi-year recession” in the US. He believes there is no strategy to get us out of “this real recession.”
Michael Burry Recession Warning
The famous investor and founder of the investment firm Scion Asset Management, Michael Burry, warned of a “real recession” that will last several years.
Burry is best known for being the first investor to foresee and benefit from the US subprime mortgage crisis that occurred between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis on the crisis. foreclosure, which was made into a movie starring Christian Bale.
Investor Big Short tweeted about a recession on Tuesday. He wrote:
What strategy will get us out of this real recession? What forces would pull us so far? There are none. So we’re really looking at a prolonged multi-year recession. Who is predicting this? There are none.
Burry has warned of a recession several times in the past. In May, investor Big Short warned about a looming consumer recession and more profit woes.
In April, he said that the Federal Reserve “has no intention of fighting inflation,” adding that “the Federal Reserve is all about reloading the monetary bazooka. Therefore, you can go to the rescue and finance the fiscal option”.
New York University professor Nouriel Roubini, who is sometimes known as Dr. Doom, responded to Burry, tweeting: “Some of us have been predicting a long and severe recession and we explain in detail why we are heading towards a Great Staflationary Debt Crisis”. In another tweet, he wrote:
I myself have argued all year that the next recession probably won’t be ‘brief and shallow’.
This week, Tesla CEO and head of Twitter, Elon Musk, also warned about a severe recession. He urged the Federal Reserve to cut interest rates “immediately,” stressing that the Federal Reserve is “greatly increasing the likelihood of a severe recession.”
Do you agree with Michael Burry on a prolonged multi-year recession? Let us know in the comments section.
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