Michael Burry, who came to the agenda with his heavy criticisms of Dogecoin (DOGE) and Shiba Inu (SHIB), made a new post. In his share, the expert investor talked about the macroeconomic situation. Accordingly, the founder of Scion Capital said that the situation will only get worse. Burry’s comments attracted attention because he had previously correctly predicted the subprime mortgage crisis.
“The economic situation will get worse”
Burry draws attention to the worsening white-collar employment in the USA. According to him, the white-collar employment bubble is bursting and there is a threat of a permanent decline in employment. Also, Burry predicts that working from home will be seen as the culprit of worsening employment in the long run. The Dogecoin critic added that he expects a 2008-level economic collapse soon. Burry’s remarks came at a remarkable time. Accordingly, the US Department of Labor will announce the US’s first jobless claims on September 29.
Why are Burry’s predictions important?
The US economy is grappling with rising inflation. The FED is taking an aggressive stance to curb inflation levels in the economy. Consumer price data for August showed that inflation was worse than expected. After that, the Fed increased interest rates by another 75 basis points. Experts say a mega increase of 100 basis points is also likely before the end of 2022. The Fed, meanwhile, sees employment as an important aspect of the economy.
A strong labor market has the potential to support the Fed’s hawkish stance. Unemployment claims have another importance in the current economic environment. The global economy faces the threat of recession due to aggressive monetary policies. If white collar employment falls, it will be a significant boost to recession claims. The worsening of the economy is causing investors to turn away from risk assets such as Dogecoin, SHIB and Bitcoin. This could cause prices to drop further.
Previously criticized Dogecoin and SHIB
During the rise of Dogecoin and SHIB in 2021, Michael Burry made some posts targeting popular meme coins. At that time, DOGE and SHIB prices were flying with Elon Musk’s tweets. cryptocoin.com As we reported, Burry explained that the price increase due to Musk made Dogecoin “the biggest evidence of a major market bubble.” After that, Burry continued to criticize meme coins. In late 2021, he tweeted that DOGE and SHIB were “meaningless”.
As a result, the famous crisis seer sees meme tokens like Dogecoin and SHIB as a bubble. He continues to express this frequently. Attracting attention because of his knowledge of past crises, Burry now bets that the economy will experience a “permanent decline”. Last month, the famous investor shared a tweet with the words “sell all your assets”. This is very much in line with Burry’s collapse expectations.
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