Michael Burry has predicted the US economy will suffer a multiyear recession.
The ‘Big Short’ investor sees no way for authorities to end the downturn early.
Burry has warned consumers will virtually exhaust their savings soon, tanking the economy.
Michael Burry has sounded the recession alarm, warning the US economic downturn will probably last several years as he sees no way to end it early.
“What strategy will pull us out of this real recession?” he said in a now-deleted tweet on Tuesday. “What forces could pull us so? There are none. So we are really looking at an extended multi-year recession.”
The investor of “The Big Short” fame seems to be suggesting the Federal Reserve and US government have few good options to shore up growth. He has previously accused policymakers of fueling inflation by flooding the economy with money during the pandemic, and warned that could make it tougher and more expensive to stimulate growth in the future, especially if doing so would fuel price increases.
Burry has been predicting a recession for a while. In June, he noted Americans — faced with surging prices and higher interest rates — are saving less, borrowing more, and poised to virtually exhaust their savings by Christmas. Those trends threaten to hammer consumer spending, erode corporate profits, and spark an economic downturn, he said.
Amzn bond offering 40bps higher than where existing currently trading.
Liquidity is horrible in corporate bond market. When new large issuances come out actual market price becomes transparent.
— Jason Van Gaal (@GaalJason) November 30, 2022
2022 is not 2008 – but you might not realize that just by looking at the price action. pic.twitter.com/9cOHKMBLlz
— Willie Delwiche, CMT, CFA (@WillieDelwiche) November 29, 2022
— Lance Roberts (@LanceRoberts) November 30, 2022
China's manufacturing and non-manufacturing activities both slip deeper into contraction in Nov.
Manufacturing PMI at 48
Non-manufacturing PMI at 46.7 pic.twitter.com/afbmZSPAdD
— Cathy Yuan Zhang (@CathyYuanZhang) November 30, 2022
Elon Musk has said: Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession.
— unusual_whales (@unusual_whales) November 30, 2022