'Big Short' Investor Michael Burry Warning

 

 

‘Big Short’ investor Michael Burry Warning

 

'Big Short' investor Michael Burry warns the US economy is on borrowed time — and says consumers will blow through their savings in a matter of months Michael Burry said the US economy could suffer once consumers emptied their savings accounts. The "Big Short" investor expects rising debt and reduced savings to hit growth and company profits. "Charting Total US Personal Savings/GDP," he wrote. "Red line is the all-time low at 1.5%, set in July 2005. The investor of "The Big Short" fame attached a chart showing US personal savings had plunged from over 25% of GDP in spring 2021 to about 3.8% today and were on course to hit a record low of under 1.5% later this year. Burry's view seems to be that consumers are raiding their savings accounts to weather inflation in food, energy, and housing costs and that a recession is likely once those cash reserves are exhausted.