Posted on 11/07/2025 9:24:26 AM PST by DFG
The man who predicted the 2008 financial crash could soon be proven right again.
On Tuesday, Michael Burry — who became a household name after predicting the 2008 crash and inspiring the film The Big Short — had wagered more than $1 billion that Wall Street's AI boom will end in tears.
Now the cracks are showing. US tech stocks are on track for their worst week since Donald Trump's 'liberation day' tariffs rattled global markets in April.
Eight of the most valuable AI-driven companies — among them Nvidia, Meta, Palantir and Oracle — have lost a staggering $1.1 trillion in market value since the end of last week.
By midday in New York, The S&P 500 was down 1.2 percent, the Nasdaq 2 percent and the Dow 300 points, or 0.7 percent. The Nasdaq is on course for a 4 percent weekly loss, its sharpest decline since Trump's tariff war years.
Burry specifically bet that the value of stock for Nvidia and Palantir — two of the market’s hottest AI plays — would fall, and those two have been hardest hit.
Shares of Nvidia — the world's most valuable company — tumbled another 4 percent Friday, leaving them down 13 percent for the week. Palantir has plunged 17 percent since Monday,
Filings show Burry's hedge fund, Scion Asset Management, disclosed put options worth about $900 million against Palantir and $187 million against Nvidia. A put option is a financial bet that pays off if a company's share price falls.
CEO Jensen Huang made things worse by admitting that 'China is going to win the AI race.' He later tried to walk back the remark, but investors were already spooked.
(Excerpt) Read more at dailymail.co.uk ...
we’re doomed! Sell everything and move to Peru!
Nothing like “experts” going to the media and talking down the stock market, then shorting.
Too much slapstick danger there. Haven’t you seen Paddington in Peru??
Market sold the Trump and Xi meet up last month. Been trending down since.
And then they will bounce back up in the next month. Now is the time to buy. I am buying.
They may very well be over bought, but they dropped most recently because it was announced this guy was betting against them. So...
News is only put out to deceive the public. We are NEVER told what is going on until the big moves have already been made.
“...on track for their worst week since Donald Trump’s ‘liberation day’ tariffs...”
It wasn’t the tariffs that caused the market dip, it was the greedy people in the process that caused it.
wy69
Look at the likely money-laundering candidates for the real offenders.
Michael Burry's genius wasn't knowing to short the stocks, it was knowing when to short them. A little bit of insider leaks could have helped fix the timing.
>> we’re doomed! Sell everything and move to Peru!
✅ The drugs are better in Colombia & Venezuela. 😉
Tariffs don’t slow the economy of the consuming import nation, it slows the economy of the export producer nation. Consuming less foreign made goods does not slow our economy down. ECON101.
My stockbroker told me last January that their analysts expected a correction this past summer. It’s just late.
If factory orders are down because of tariffs it matters that the factory is in China. That is bad for China a big nothing for us.
We had a 15% correction earlier this year. Wasn’t that good enough?
No question, but I think this latest drop started when someone reported his short positions.
Tariffs???
What about Tuesday’s election in which anti-business candidates and socialists prevailed???
true. Best to avoid the deep forests of darkest Peru!
Tariff meltdown
Tariff revenues have significantly increased, with projections for the full fiscal year 2025 pointing to a collection of about $195 billion to $215 billion, a substantial jump from previous years.
Down 40 on the day and back to a month ago is a sell-off? Really?
What a bunch of codswallop.
All the time Bush II was in office the media fiends tried to talk us into a recession of any sort possible on every day possible. They did the same in the Trump 45 term and they are doing it again now.
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