Bitcoin News and Finance
‘Big Short’ Investor Michael Burry Says ‘the Fed Has No Intention of Fighting Inflation’ Skip to main content

‘Big Short’ Investor Michael Burry Says ‘the Fed Has No Intention of Fighting Inflation’

'Big Short' Investor Michael Burry Says 'the Fed Has No Intention of Fighting Inflation'

Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, says that the Federal Reserve “has no intention of fighting inflation.” He added that the Fed’s “Serial half-point hikes are for getting elevation before stocks and the consumer tap out.”

Michael Burry on Inflation and Fed’s Rate Hikes

Famous investor and founder of investment firm Scion Asset Management, Michael Burry, shared his thoughts Thursday on the U.S. economy, inflation, and interest rate hikes.

He is best known for being the first investor to foresee and profit from the U.S. subprime mortgage crisis that occurred between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis about the mortgage crisis, which was made into a movie starring Christian Bale.

Burry tweeted Thursday:

The Fed has no intention of fighting inflation. Serial half-point hikes are for getting elevation before stocks and the consumer tap out.

“Same with rapid-fire QT [quantitative tightening]. The Fed’s all about reloading the monetary bazooka. So it can ride to the rescue & finance the fiscal put,” Burry added.

At the time of writing, his tweet has been liked 13.8K times and retweeted over 2.2K times. Many people on Twitter agreed with Burry.

One user wrote, “It is correct that the Fed would like room to ease again.” Another noted: “Not just the Fed. Look at all the central bankers around the world raising rates at similar times and similar basis points. Canada and China around the 24th of this month by 50bps. This is coordinated and they think it will work without any major collapse.” A third user opined, “Anyone who doesn’t blame the Fed for out-of-control housing inflation is gaslighting you.”

The rate of U.S. inflation jumped to a 40-year high of 8.5% in March and showed little sign of quickly reversing, according to data released this week. However, many people believe that inflation is much worse than the reported number.

Gold bug Peter Schiff commented Thursday: “According to the government March consumer prices rose by 8.5% YoY. Consumer prices are composed of the prices we pay for the stuff we import and the stuff we produce ourselves. But March YoY import prices rose 12.5% and export prices rose 18.8%. That’s an average rise of 15.65%!”

The president of the Federal Reserve Bank of St. Louis, James Bullard, has repeatedly warned that the Fed needs to raise rates much faster to fight inflation. He told the Financial Times this week that it is “fantasy” to think the Fed can bring inflation down sufficiently without raising rates to a level that constrains the economy.

Meanwhile, Federal Reserve Governor Christopher Waller believes that inflation peaked in March. He said Thursday: “I’m forecasting that this is pretty much the peak. It is going to start to come back down.”

Do you agree with Michael Burry? Let us know in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r
Post a Comment
Read more
Blogarama - Blog Directory