Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, has warned of "the mother of all crashes." He further explained that the problem with cryptocurrency is the leverage.
Michael Burry Warns of Mother of All Crashes
Famous investor and founder of private investment firm Scion Asset Management, Michael Burry, shared his view last week about where he sees the markets heading.
Burry 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.
The Scion Asset Management founder tweeted Thursday:
All hype/speculation is doing is drawing in retail before the mother of all crashes. #FOMO Parabolas don't resolve sideways; When crypto falls from trillions, or meme stocks fall from tens of billions, Main Street losses will approach the size of countries. History ain't changed.
He also commented on cryptocurrency, asserting that "The problem with crypto, as in most things, is the leverage." The famed investor further opined, "If you don't know how much leverage is in crypto, you don't know anything about crypto, no matter how much else you think you know."