Posted on 03/13/2023 8:47:35 AM PDT by Red Badger
Financial expert Michael Burry sent one perfect Tweet on Sunday that explained why the economy is collapsing around us.
Burry, best known for his portrayal by Christian Bale in hit movie “The Big Short,” has been signalling the alarm for an impending, massive recession for quite some time. After Silicon Valley Bank’s collapse Friday and Signature Bank’s shut down, Burry took to Twitter with one perfect statement:
“2000, 2008, 2023, it’s always the same.” Burry wrote, now shared on his archive page. “People full of hubris and greed take stupid risks and fail. Money is then printed. Because it works so well.”
Burry couldn’t be more spot on about the whole process. The part that resonates most to me is his perception of people, because that is who we have to blame should the economy collapse like the dying star it is. It’s not the system. It’s not the pandemic. It’s people who’ve put us in this position with an intangible, confusing, corrupt monetary system.
I’ve been bringing you updates from Burry and a slew of other financial experts for almost a year. There’s no telling where the economy will go from here, but billionaire investor Stanley Druckenmiller joked in October that using cyanide was the best way to avoid what’s coming for us.
I can do it in one perfect word. BIDEN.
“People full of hubris and greed take stupid risks and fail. Money is then printed. Because it works so well.”
It’s easy to take risks when you are too big to fail.
Be serious. This has nothing to do with Biden. This banking failure is systematic, with many bad actors over many years.
And Biden isn't even one of those actors. He can't even control his bowel movements, much less anything important.
I’m surprised that it’s taken this long since 2008.
Country is like a small plane with the stall warning blaring and the pilot (Biden) fast asleep after pulling power. (For aviation types.)
Ya beat me to it
POTUS Potato told the World what he was going to do if elected and began the destruction in his first day in office.
I agree. To blame all of this on Biden is so shortsighted and simplistic. There are so many corrupt players on all sides of the political spectrum.
What concerns me is the “fix.”
We could be in a depression by 2024. It should be a cakewalk for trump.
It should be a cakewalk for trump.
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Just like 2020 ...
The SVB failure is exactly the same as in 2008: institutions that are supposed to be banks are allowed to run as though they are investment firms, holding assets that are almost exclusively tradeable stocks and bonds.
The charade that they are "banks" allows them to attract deposits on which little interest is paid while the executives and stockholders reap the rewards of the higher returns of investments vs. a loan portfolio. When it all goes south, the executives walk away with their pay and bonuses, whoever was last suckered into buying stock gets wiped out, and the rest of society gets stuck with the bill.
This is now the American Way.
In all three instances there is a common theme.
Can you name it?
Of course it’s Biden damnit!
But for him crippling energy resulting in severe inflation resulting in more printing/spending of money resulting in Fed interest rate hikes resulting in bond devaluation, the banks would be fine.
“should be a cakewalk for trump.”
Trump may not be able to survive DeSantis.
It arguably started as soon as he was declared the winner in November of 2020.
This is what is known in the insurance industry as moral hazard. The stockholders of SVB are SOL, but so are the taxpayers. The depositors should have known better than put their money in a flakey bank. Who in their right mind has the bulk of their net worth in a single bank, especially if their net worth is more than $250k? I understand that big companies use large banks for payroll, but payroll liquidity should be a tiny fraction of their assets.
It’s not the system.
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Au contraire. The system rewards greed, deceit and failure. There are no real consequences for it. The system has become so byzantine and complicated that its nearly impossible to hold anyone accountable for anything, thereby incentivizing bad behavior.
Moral hazards grow like weeds in the fertile ground of a permissive and unresponsive system.
“Who in their right mind has the bulk of their net worth in a single bank, especially if their net worth is more than $250k?”
************
People who are confident that the system has their six.
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