‘The Big Short’ investor who predicted the 2008 crash warns the market is ‘underestimating’ the economic impact of DOGE’s mass spending cuts

https://finance.yahoo.com/news/big-short-investor-predicted-2008-181733029.html

by JuanPabloElSegundo

14 comments

  1. I’m going to wait to hear what Michael Burry has to say on the matter.

  2. Well duh. They are making cuts to weather service, National Parks, medicaid, plus so much more. The impacts will be much worse than whatever repercussions people think up. As long as billionaires don’t notice anything, they don’t care.

  3. We probably are, but we have a major freaking issue if throwing money down the drain is keeping the economy afloat

  4. The people who called the 2008 collapse are always given way too much credit for their foresight. It’s inevitable in every crash that someone will have “predicted” it ahead of time, because there are millions of people predicting a million different things about the economy at any given time, and wrong predictions are forgotten to the sands of time while correct predictions are heralded as some indication of genius insight. It’s just another form of survivorship bias.

    If you look back at every major crash, someone inevitably will have called it ahead of time and placed their bets accordingly, because it’s the nature of how these things always play out. Michael Burry (who isn’t the investor in the article, but is more well known than Danny Moses) has been ringing the warning bell about a big crash for a long time, even if he is eventually right, it’s clear that lucky timing played a huge role in his success in 2008.

  6. same guy that has predicted a bunch of other crashes that haven’t happened, but even a broken clock is right twice a day i guess

  7. I listen to E.F. Hutton. Because when E.F Hutton talks, people listen.

  8. I think the cut in contracts is much more impactful to the economy than cuts to the labor force. The latter is only around 5-7% of the total federal workforce and they are mostly probationary. That will hardly move the meter on the economy. What will impact the economy is all the federal contracts that are being cut and thereby impacting private companies whose total govt revenue share is not insignificant.

  9. Really what this movie did right (and the thing that’s missing from the democrats messaging) is how they used celebrity and easy analogies to relate hard concepts to the moviegoer.

    We need an Anthony Bourdain moment to explain to the public what is happening and no one quite has it yet.

  10. Look at the lines of your local food bank / church food pantry if you want an early indicator of how bad it is going to get.

    I drive by one to take my kid to his little league games. In the past, I was unaware that the church did drive up food distribution.

    Now I can’t miss it. 8 am on a Saturday and it is already 20 cars deep.

    They don’t start distributing through until 9:00 a.m.

  11. It’s macro transfers, gov spending allows for margin expansion as consumers wealth has kept up with economic growth, gov spending has allowed for this monstrous run we’ve been on, will it stop? so far budget says spend baby spend

  14. I predicted 2021 tech market crash on reddit when the market was peak. Can I also get the credit as these guys? Lol

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