What most people tend to forget is that, on the other side of the mortgage collateralized debt obligations’ (CDOs) bet made by Burry, there was prestigious ធនាគារវិនិយោគ Goldman Sachs. CDOs are loans, mortgages and other assets that investment banks package and offer to institutional investors.
In the book “The Big Short: Inside the Doomsday Machine” from Michael Lewis, it is said that Burry decided to bet on the implosion of the subprime market after he noticed that a lot of people couldn’t actually afford to pay their mortgages. But lenders were finding new financial instruments to justify handing them more money.
លោក Burry បាននិយាយថា "វាគឺជាសញ្ញាច្បាស់លាស់ដែលថាអ្នកឱ្យខ្ចីបានបាត់បង់វា ដោយធ្វើឱ្យខូចស្តង់ដាររបស់ពួកគេជានិច្ច ដើម្បីបង្កើនបរិមាណប្រាក់កម្ចី" ។
Lenders were selling these loans to Goldman Sachs, Morgan Stanley, Wells Fargo and other “too big to fail” banks, which packaged them into bonds and sold them off. These practices almost brought the financial system to its knees. They caused the worst financial crisis since 1929.
For several months now, Burry has been sounding the alarm about the state of the economy again. He believes that it will inevitably fall into ការធ្លាក់ចុះសេដ្ឋកិច្ច . He says he foresees a household debt crisis that would pose a serious danger to the economy.
“នៅចាំបញ្ហាសន្សំលុយអត់? គ្មានទៀតទេ។ សាច់ប្រាក់ឧទ្ធម្ភាគចក្រ COVID បានបង្រៀនមនុស្សឱ្យចំណាយម្តងទៀត ហើយវាជាការញៀន។ រដូវរងានឹងមកដល់” Burry បានព្រមានកាលពីខែសីហាឆ្នាំមុន។
“Winter coming” seems to be a reference to the HBO series “Game of Thrones.” Characters used the phrase as a warning.
A Mysterious Bet “13.48% of stocks closed above their 200-day ការផ្លាស់ប្តូរមធ្យម yesterday,” Burry, who runs មូលនិធិការពារហានិភ័យ Scion Asset Management, said on Twitter on October 1. “Bottom in 2009 was 1.2%. Bottom in 2020 was 2.8%. Currently at 2007 levels.”
He then confirmed this dire prediction by liquidating almost all of his U.S. stock portfolio in the second quarter.
But he បានបន្ត buying stocks in the third quarter, according to regulatory filings. As of September 30, Scion’s portfolio of US-listed companies included six companies.
He bet on Aerojet RocketDyne (អេជអរអរ ) - ទទួលបានរបាយការណ៍ឥតគិតថ្លៃ , ទំនាក់ទំនងធម្មនុញ្ញ (CHTR ) - ទទួលបានរបាយការណ៍ឥតគិតថ្លៃ , Corecivic (ស៊ីស៊ីអេច ) - ទទួលបានរបាយការណ៍ឥតគិតថ្លៃ , Geo Group, Liberty Latin America (លីឡាប ) - ទទួលបានរបាយការណ៍ឥតគិតថ្លៃ and Qurate Retail. In total, his equity portfolio has a total value of $41.3 million, up $38 million from three months earlier.
A few days after revealing these new bets, Burry has just sent a cryptic message which suggests that he has also bet big on the collapse of either a company’s stock or the fall of an industry, or even an asset class.
“You have no idea how short I am,” Burry posted on Twitter on November 15. The tweet has since been deleted as is often the case with all of his posts.
Burry does not reveal his position. He leaves social network users to speculate. They embarked on a guessing game involving mostly names of tech groups. Burry had liquidated the Alphabet and Meta Platforms shares he held in the second quarter.
What is certain is that Burry has caused a stir again because many are wondering if he is really talking about a bet or if he is talking about his height. The financier is said to be 5′ 6” tall.
Short selling stock is a bet that the stock price will drop.