Friday, June 24, 2022
HomeBusinessEconomy'Big Short' Investor Michael Burry Warns of Impending Consumer Recession, More Earnings...

‘Big Short’ Investor Michael Burry Warns of Impending Consumer Recession, More Earnings Issue

Hedge fund manager Michael Burry, famous for predicting the 2008 financial crisis, warned of an impending consumer recession and further earnings problems. He cited falling US personal savings and record-breaking revolving credit card debt despite trillions of dollars in stimulus money.

Recession Warning from Michael Burry

Michael Burry, famous investor and founder of investment firm Scion Asset Management, warned on Friday of an impending consumer recession and more earnings problems ahead.

He is best known as the first investor to anticipate and profit from the US subprime mortgage crisis that occurred between 2007 and 2010. It is featured in Michael Lewis’ book “The Big Short” about the mortgage crisis. A movie starring Christian Bale.

Burry announced on Twitter on Friday:

US Personal Savings dropped to 2013 levels, savings rate to 2008 levels – revolving credit card debt peaked at a record-breaking rate despite all those trillions of cash falling in its rounds. Coming: a consumer recession and more earnings problems.

His tweet has two pictures. The first shows a sharp decline in US personal savings. The other shows a sharp increase in outstanding consumer loans.

At the time of this writing, Burry’s tweet, which received 11 thousand likes and almost 2.5 thousand retweets, received 476 comments. Many agreed with Burry on Twitter and thanked him for raising the issue and telling others to heed his warning.

One commented: “This is wild. We sent helicopter money over people, and yet personal savings dwindled and credit card debt was immediately restored.”

Another wrote: “Exactly as I said – inflation is not a problem. Consumer debt is a problem. Demand-side monetary policy is flawed. Rate manipulation fails to correct the market. Americans printed cash. Instead of focusing on spending, focus on long-term savings. Kill the imports.”

Another user said:

While the media wants the narrative to be that the consumer is powerful, the numbers say otherwise. Decreasing savings, rising debt, and inflation metrics that continue to rise month-on-month as energy prices are near the highest we’ve seen since 2008.

Few agreed that “the numbers don’t lie,” and the U.S. economy looks as dire as Burry suggests or worse.

A growing number of people recently warned that a recession is either here or imminent, including the Tesla CEO. elon muskRich Dad Poor Dad Author Robert Kiyosakiand senior chairman and former CEO of Goldman Sachs, Lloyd Blankfein.

Tags in this story

big shorts, great short investor, consumer recession, credit card debt, Depression, bury the doctor, earning, inflation, bury michael, michael burry inflation, Michael Burry recession, personal savings, recession, consumer spending

What do you think of Michael Burry’s warning? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been a herald ever since. His areas of interest are Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image Credit: Shutterstock, Pixabay, Wiki Commons

disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of a buy or sell offer or recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is liable, directly or indirectly, for any damage or loss allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.

Do NOT follow this link or you will be banned from the site!