Hedge fund manager Michael Burry is famous for predicting The financial crisis warned of a “prolonged recession” in the United States. He believes there is no strategy to pull us out of “this real recession.”
Michael Burry’s Recession Warning
Michael Burry, a prominent investor and founder of investment firm Scion Asset Management, has warned of a “true recession” that will last for several years.
Burry is best known as the first investor to foresee and profit from the U.S. subprime mortgage crisis from 2007 to 2010. He is featured in his Michael Lewis book on mortgages, The Big Short. Crysis made into a movie starring Christian Bale.
This Big He short investor tweeted about the recession on Tuesday. He wrote:
What strategies would it take to get out of this real recession? What forces would pull us there? I don’t. So we’re seeing a really long, multi-year recession. who predicts this? There is none.
Burry has warned of recessions several times in the past. In May, investors in big shorts warned of a looming consumer recession and further earnings problems.
In April, he said the Federal Reserve “is not going to fight inflation,” adding, “The Fed is all about reloading the currency bazooka. You can ride to help.”
NYU Professor Nouriel Roubini, also known as Dr. Doom, tweeted Barry: Great debt crisis caused by stagflation. In another tweet, he wrote:
I myself have been arguing all year that the coming recession will not be ‘short and shallow’.
This week, Tesla CEO Twitter chief Elon Musk also warned of a deep recession. He urged the Federal Reserve (Fed) to cut interest rates “immediately,” which he said “greatly increases the likelihood of a deep recession.”
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