Ominous estimates from the investor who predicted the crisis of 2007-2008
Michael Berry, who sounded the alarm last summer about the “biggest speculative bubble of all time” recently hinted that what he described at the time as “the mother of all crashes” has already begun.
Berry rose to prominence after betting billions of dollars on the collapse of the housing bubble before the 2008 crash in the United States. The story of his bet was made into a book and a movie called “The Great Shorting”.
Now fund manager Scion Asset Management has tweeted a chart of the S&P 500, which shows the US stock index has lost much of its value since its December highs, although it has seen some temporary gains.
“And yet, I am asked “when will the crash come?”“, he wrote, implying that the crash has already begun, as noted by Business Insider.
Referring to the market’s sudden recoveries in recent months, Berry estimated that these are “shaking the dead cat” (dead cat bounce), i.e. temporary bullish bursts on the way to the inevitable collapse.
Recently, the investment option to sell almost all of his shares after a series of warnings of financial collapse, it caused a sensation in the investing and non-investing worlds. The only shares he held are in Geo Group, a company that invests in private prisons and mental health facilities and has a capitalization of less than $900 million.