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America November 28, 2022 2 mins read

“Big Short” Investor Michael Burry Warns of “Extended Multi-Year Recession”

America ı By Rochdi Rais

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Michael Burry - American Investor

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.

"Some of us have been predicting a long and severe recession and made a detailed case for why we are headed towards a Great Stagflationary Debt Crisis," NYU Stern economist Nouriel Roubini tweeted to Burry on Wednesday.

Burry rose to fame fter his billion-dollar bet against the mid-2000s housing bubble was immortalized in the book and the movie "The Big Short." He's also known for investing in GameStop before it became a meme stock, betting against Elon Musk's Tesla and Cathie Wood's Ark Innovation fund last year, and issuing dire warnings about market bubbles and crashes.

 

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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