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‘Big Short’ Investor Michael Burry Warns of Prolonged Multi-Year Recession in the U.S. Coinspeaker

Hedge fund manager Michael Burry, famous for predicting the 2008 financial crisis, has warned of “a prolonged multi-year recession” in the United States. He thinks there is no strategy to get us out of “this real recession”.

Recession warning from Michael Burry

Famed investor and founder of investment firm Scion Asset Management, Michael Burry, has warned of a “real recession” that will last for several years.

Burry is best known for being the first investor to foresee and profit from the subprime mortgage crisis in the United States which occurred between 2007 and 2010. He is described in “The Big Short”, a book by Michael Lewis on the mortgage crisis, which was made into a film 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 like this? There are not any. So we’re really looking at a prolonged multi-year recession. Who predicts this? There are not any.

Burry has warned of a recession several times in the past. In May, the Big Short investor warned about an impending consumer slump and other income issues.

In April he said that the Federal Reserve “has no intention of fighting inflation,” adding that “the Fed is all about reloading the monetary bazooka, so it can come up to the rescue and fund the fiscal down payment.

NYU professor Nouriel Roubini, sometimes known as Dr Doom, responded to Burry, tweeting: “Some of us have predicted a long and severe recession and detailed why we are heading for a big stagflationary debt crisis”. In another tweet, he wrote:

I myself have argued all year that the coming recession is unlikely to be “short and shallow”.

This week, Tesla CEO and Twitter chief Elon Musk also warned about a severe recession. He urged the Federal Reserve to cut interest rates “immediately,” noting that the Fed “massively amplifies 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 below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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