‘Big Short’ investor Michael Burry warns of consumer debt crisis: ‘Winter coming’By Thomas Barrabi
August 12, 2022
Hedge fund legend Michael Burry warned Friday that rising consumer debt represents a major risk to the US economy.
Burry, whose bet against subprime mortgages was made famous in the 2015 film “The Big Short,” shared a Bloomberg chart showing US consumer borrowing swelled to more than $40 billion in June – the second-most on record. Economists had expected a $27 billion jump.
“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.
“Remember the savings glut problem? No more. COVID helicopter cash taught people to spend again, and it’s addictive. Winter coming.”
Burry’s phrase “COVID helicopter cash” likely refers to stimulus payments that most Americans received as federal officials sought to bolster the economy during the pandemic.
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Source:
https://nypost.com/2022/08/12/big-short-investor-michael-burry-warns-of-consumer-debt-crisis-winter-coming/
