Hedge fund manager Michael Burry, who is famous for his knowledge of the 2008 mortgage crisis and has recently come to the fore in the cryptocurrency space after saying meme coins like SHIB and DOGE were “meaningless,” commented on the ongoing turmoil in the American banking industry late Monday.
Burry, who came to the agenda with SHIB and DOGE comments, talked about the US banking crisis
Michael Burry, who accurately predicted the housing crisis, earned his investors millions of dollars and inspired “The Big Short”, expressed his views on the ongoing situation in the US banking sector. First, in a now-deleted tweet, Burry said, “This crisis can be resolved very quickly. “I don’t see any real danger here,” he said. But in general, he pointed out, what is happening in the current situation is similar to the dot-com bubble of 2000, the housing crisis of 2008. He noted that throughout history, including now in 2023, individuals with “inflated egos and desire for profit” have led to failure by taking silly risks.
Burry’s comments came as the US government and FED intervened in the banking industry to stave off the larger effects of the collapse of Silicon Valley Bank, the second largest banking failure in the US. The prominent investor also recently drew comparisons between Silicon Valley Bank and energy trading giant Enron, which went bankrupt in 2001 due to accounting fraud. Burry’s warnings highlighted the need for greater “transparency and accountability” in the financial industry. He criticized the SVB executives for their recklessness.
Burry has been warning about the economy and the stock market for years. He warned of the potential for us to see “the greatest speculative bubble of all time” in anything. As we reported on cryptokoin.com, it warned individual investors not to buy meme stocks and cryptocurrencies, which could lead to “the biggest of all crashes”. He especially drew attention to the meaninglessness of SHIB and DOGE. Despite these warnings, the continued speculative behavior of investors has led some to question whether the markets are heading towards a showdown.
What had happened?
The SVB faced a bank liquidation as rising interest rates weighed heavily on its balance sheet and its securities portfolio, which consisted largely of US Treasuries, was devalued by higher rates. Then, it was shut down by regulators last week. The collapse of the SVB coincided with the bankruptcy of two other banks – Silvergate and Signature Bank. Both offered services focused on cryptocurrencies. Burry compared the collapse of the SVB to the 2008 crisis and the 2000 dotcom bubble collapse, as well as pointing out that the government’s effort to save these companies by printing more money was “overdone”.
61858
