The Collapse of Financial Markets May be Inevitable – Michael Bury
Michael Burry, a well-known hedge fund manager dubbed "The Big Short," has gained notoriety for his accurate predictions about financial markets.
In a now-deleted tweet from March 12, Burry warned about the current state of the financial world, criticizing Silicon Valley Bank’s bosses for their reckless behavior.
— Michael Burry Archive (@BurryArchive) March 12, 2023
Burry believes that throughout history, individuals with inflated egos and a desire for profit have taken foolish risks, leading to failure. He cited the dot-com bubble in 2000, the 2008 housing crisis, and the present day as examples of this trend.
Burry also warned that governments often resort to printing more money when these failures occur, a tactic he believes has been overused. He stated that this approach “works so well” that it has become a crutch for policymakers.
Burry’s warnings serve as a reminder that reckless behavior can have disastrous consequences, and he has drawn comparisons between Silicon Valley Bank and Enron, the energy-trading giant that went bankrupt due to accounting fraud in 2001. Burry’s warnings have drawn attention to the need for greater transparency and accountability in the financial industry.
Burry has been warning about the economy and the stock market for years. He has cautioned individual investors against buying into meme stocks and cryptocurrencies that he believes could lead to the “mother of all crashes.” Despite these warnings, investors have continued to indulge in speculative behavior, leading some to question whether the markets are headed for a reckoning.
Meanwhile, Robert Kiyosaki, author of the best-selling personal finance book “Rich Dad Poor Dad,” has also warned about the financial landscape. He tweeted on March 10 that a third lender will likely follow in the path of Silicon Valley Bank’s collapse. Kiyosaki believes that this situation will positively impact precious metals.
His projection corresponds with his earlier prediction that the Lehman Brothers would go bankrupt in 2008. The collapse of Lehman Brothers exacerbated the financial crisis, which many viewed as a pivotal moment.
Overall, both Burry and Kiyosaki have warned about the financial world’s state, urging caution and a greater focus on transparency and accountability. As concerns grow about the stability of global markets, their warnings are worth heeding.