New Crisis Coming? (real Michael Burry of 'The Big Short')

[dualstow]

Maybe gold will come back sooner than we think, like Cortopassi suggested.

Michael Burry, Real-Life Market Genius From The Big Short, Thinks Another Financial Crisis Is Looming
http://nymag.com/daily/intelligencer/20 ... oming.html

(gold not mentioned, though)

[lazyboy]

Maybe gold will come back sooner than we think, like Cortopassi suggested.

Michael Burry, Real-Life Market Genius From The Big Short, Thinks Another Financial Crisis Is Looming
http://nymag.com/daily/intelligencer/20 ... oming.html

(gold not mentioned, though)

I saw the Big Short and really recommend it. His focus is on negative real interest rates- which as a trend would be seem to be positive for Long Term Treasuries. There's probably more here than meets the eye. If the system is truly stressed gold may benefit- which may be more than we bargained for.

Where do we stand now, economically?
"Well, we are right back at it: trying to stimulate growth through easy money. It hasn’t worked, but it’s the only tool the Fed’s got. Meanwhile, the Fed’s policies widen the wealth gap, which feeds political extremism, forcing gridlock in Washington. It seems the world is headed toward negative real interest rates on a global scale. This is toxic. Interest rates are used to price risk, and so in the current environment, the risk-pricing mechanism is broken. That is not healthy for an economy. We are building up terrific stresses in the system, and any fault lines there will certainly harm the outlook."

[Fred]

I haven't seen the movie but I read the book by Michael Lewis. If Michael Burry is predicting something he might be the only pundit I'm tempted to listen to.

Interesting that the commodity he suggests investing in isn't AU but H2O.

[dualstow]

I haven't seen the movie but I read the book by Michael Lewis. If Michael Burry is predicting something he might be the only pundit I'm tempted to listen to.

Interesting that the commodity he suggests investing in isn't AU but H2O.

It's kind of H2O. He's interested in food as a way of holding and transporting water, since water is difficult to transport, it's affected by politics, etc. Burry's into almond farms. :-) He probably knows what he's doing.