Expert investor and the founder of Scion Asset Management, Michael Burry, has another dire warning for the economy. On Wednesday, Burry predicted a 2008 level economic disaster. He based his predictions on the crashes in the crypto, meme stocks, and SPACs market. He believes that the slightly cooling inflation will become hot again.
Burry believes that inflation works in spikes. The temporary relief is not a result of the economy improving, it is because that is its nature. He also refuses to credit the Biden administration or the Fed for lowering inflation levels.
The Consumer Price Index for the month of August, a strong indicator of inflation, will be released on the 13th of September.
The fund manager of "The Big Short" fame said in a tweet this week that he believes the cataclysmic collapse is now in full swing and added it to his list of correct predictions he's made.
"Crypo crash. Check," he tweeted. "Meme crash. Check. SPAC crash. Check. Inflation. Check. 2000. Check. 2008. Check. 2022. Check."
"No, we have not hit bottom yet," he tweeted on Wednesday. "Watch for failure, then look for the bottom," he added, referring to companies and funds going under.
Burry shot to fame after his billion dollar bet against the US housing bubble in the mid-2000s was immortalized in the book and the movie "The Big Short." He's also known for investingin GameStop before it gained meme-stock status and taking short positions against Elon Musk's Tesla and Cathie Wood's Ark Invest last year.