Michael Burry: no ‘true danger’ of contagion from SVB
Investor Michael Burry believes the spreading crisis following the collapse of Silicon Valley Bank could resolve “very quickly.”
“I am not seeing any true danger here,” Burry, who predicted the 2008 housing crash and was played by Christian Bale in The Big Short film, said in a tweet Monday night that he has since deleted.
Silicon Valley Bank, a California lender, was seized by federal regulators last week after its customer base of tech startups began withdrawing deposits en masse. The regulator created a bridge bank to hold SVB’s deposits and President Joe Biden said Monday that they would be protected.
Burry’s comments come less than a day after he tweeted that “hubris and greed” are common themes and that people “take stupid risks, and fail.” Then, policymakers “print money” to fix the situation, he said.
The Scion Asset Management founder is known for his cautionary tweets on the markets and the economy. Burry recently warned that inflation will spike again and instructed traders to “sell” ahead of February’s Federal Reserve meeting.
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