Will 2022 Be A Repeat of 2008? Michael Burry Says Yes

EDITOR’S NOTE: 

Michael Burry of The Great Short fame just predicted that the economy in 2022 will be like watching a plane crash.

What’s he saying exactly? He’s basically predicting that 2022 will be very similar to the Great Financial Crisis of 2008. He sees warning signs flashing red across the Fed’s reverse repo program (RRP), specifically, severe counterparty risk. And the Fed is the counterparty.

What’s RRP? In simple terms, it’s where banks have been parking their money, particularly when they can’t seem to find anywhere else to put it. Right now, the demand for RRP is at an unprecedented $2 trillion “per day.” And banks are parking their money at the Fed for almost zilch return. It makes you wonder why.

What to watch out for: The RRP story is just the beginning. There are plenty more factors to consider. Sadly, none of them seem to offer a way out of this implosion. George Gammon does an excellent job explaining in simple words what Michal Burry is worried about. Burry was right in predicting 2008. If his prediction holds true, then you might want to brace yourself for the economic disaster that’s about to unfold. 

Source: George Gammon

Originally published by George Gammon on YouTube.