An investor who predicted the 2008 crisis reiterates his predictions for the impending market crash. Criticizing SHIB and DOGE, Michael Burry warned about the US economy in his latest tweets.
SHIB and DOGE critic expect worse
Investors have been wearing out for several months, and every attempt of the markets has been unsuccessful. The legendary investor Michael Burry, who turned the 2008 crisis into an opportunity, says that worse will come. Burry stated in his latest tweets that he expected worse than the ‘Great Recession’. The crisis oracle wrote on his Twitter account:
Again I wondered if this could get any worse than 2008. Interest rates, global exchange rates, central banks appear reactive and in hedge mode
Basically, Burry thinks there are many companies with inflated valuations. He believes that the performance of these firms does not justify their stock market valuations because they lost a lot of money. Therefore, according to him, a drastic correction may be at hand.
Inflation triggers worse
Burry, who has more than a million followers on Twitter, often voices his views on the political and economic climate before quickly deleting his posts. Prior to Burry’s tweet, the Dow Jones index lost nearly 500 points and fell more than 20% from its peak of around 37,000 to enter bear market territory.
In recent months, the Fed and other central banks around the world have tried to contain the highest inflation in decades by raising interest rates. Despite indications that economies are slowing, the World Bank and other organizations have warned that central banks risk starting a global recession by continuing to raise interest rates rapidly and simultaneously.
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