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 options to stimulate growth. He has previously accused policymakers of fueling inflation by flooding the economy with money during the pandemic and warned that could make it more challenging and more expensive to stimulate growth in the future.
The Scion Asset Management founder also noted in his latest tweet that other commentators forecast a mild, short-lived recession, not a deep and protracted one.
“Who is predicting this?” he said. “There are none.”
At least one expert took issue with Burry’s claim that he’s the only one bracing for a prolonged downturn.
