'The Big Short' guy says his terrifying economy prediction is coming true | indy100

Big Short character profile: Michael Burry (Christian Bale)

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Michael Burry, the hedge-fund manager who served as the inspiration behind The Big Short, made a prediction about the stock market last year and now he's hinted it has come true.

On Thursday, Burry tweeted "I keep getting asked 'wen crash'," and attached a photo of the S&P 500 from 2017 until now. Although Burry deleted the tweet, a Twitter account called BurryArchive took a screenshot of the tweet.

Last year, the head of Scion Asset Management tweeted that the "mother of all crashes" was approaching before deleting it.

The follow-up tweet seemingly implies that the massive stock market crash is already, if not about to, happen.

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The S&P 500, is a stock market index that tracks 500 public companies. It is used as a benchmark to determine how well the US stock market is performing.

Since January, the S&P 500 has dropped more than 18%. Combined with fears about inflation, people are expecting a financial recession in the near future.

\u201chttps://t.co/nXxRqXQHsi\u201d
— Michael Burry Archive (@Michael Burry Archive) 1661957669

Burry is closely followed by meme-stock investors because of his previous financial predictions.

Famously, Burry predicted the 2007 housing market bubble that led to the Great Recession. He served as inspiration for the book and movie The Big Short.

People on Twitter reacted to Burry's prediction with caution.

\u201c@gurgavin He's often early. He positioned himself on the short side well in advance of this downturn. You have to respect his track record. Timing is difficult for virtually any investor/short seller.\u201d
— Gurgavin (@Gurgavin) 1661963954

\u201c@The_RockTrading 'Even a broken clock is right twice a day.' Although things aren't looking good, a man whose predicted imminent crashes repeatedly for years is not exactly the most reliable source, nor should be credited this time, if one of the many play out. His batting avg is too low now.\u201d
— John @ The Rock Trading Co. (@John @ The Rock Trading Co.) 1662036282

Earlier this month, Burry also warned people of rising consumer debt brought on by the Covid-19 pandemic and inflation.

“Net consumer credit balances are rising at record rates as consumers choose violence rather than cut back on spending in the face of inflation,” Burry tweeted according to the New York Post. “Remember the savings glut problem? No more. COVID helicopter cash taught people to spend again, and it’s addictive. Winter coming.”

In August, Burry's hedge fund dropped all 11 of their US equities including Google parent Alphabet and Meta keeping only private-prison operator Geo Group Inc according to Bloomberg.

It seems the move may have been motivated by Burry's prediction.

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