‘Big Short’ Michael Burry warns 2023 market is mirroring dot-com and housing crashes

Legendary investor Michael Burry, a hedge fund manager commonly known as “The Big Short,” has built a reputation for making predictions about the financial markets.

In a now-deleted March 12 tweet, the investor who famously predicted the 2008 financial crisis issued a warning about the current state of the financial world while blasting Silicon Valley Bank’s bosses for their recklessness.

Burry stated that throughout history, including the dot-com bubble in 2000, the 2008 housing crisis, and now in 2023, individuals with inflated egos and a desire for profit have taken foolish risks, leading to failure.

“The Big Short” also noted that governments often resort to printing more money when these failures occur, a tactic he believes has been overused ‘because it works so well. As concerns grow about the state of global markets, Burry’s warning serves as a reminder that reckless behavior can have disastrous consequences.

Burry likens SVB to Enron

The Renowned investor also has recently drawn comparisons between Silicon Valley Bank (SVB) and Enron, the energy-trading giant that infamously 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 warned of the potential for the “greatest speculative bubble of all time in all things.” He cautioned individual investors against buying into meme stocks and cryptocurrencies that 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.

Robert Kiyosaki stresses more pain to come

Meanwhile, Robert Kiyosaki, the author of the best-selling personal finance bookRich Dad Poor Dad,” has warned that a third lender will likely follow in the path of Silicon Valley Bank (SBV) collapse. He stressed that the situation would positively impact precious metals in a tweet on March 10.

Kiyosaki’s projection corresponds with an earlier prediction that the Lehman Brothers would go bankrupt in 2008. Significantly, the collapse exacerbated the financial crisis that began in 2008, which was seen as a pivotal moment.

Source: https://finbold.com/big-short-michael-burry-warns-2023-market-is-mirroring-dot-com-and-housing-crashes/