Michael Burry, known for predicting the 2008 housing crash, is back in the spotlight. He’s recently started a Substack newsletter after closing down his hedge fund. In this new space, he wants to share his thoughts about artificial intelligence and his worries about a potential market bubble.
He has a large following on X (formerly Twitter), with 1.6 million people interested in his insights. His newsletter is called “Cassandra Unchained,” and it comes with an annual fee of $379. Burry believes we are repeating past mistakes, much like the tech bubble of the late 1990s.
In a recent post, he compared today’s rush into AI to that earlier tech mania, where officials overlooked signs of a bubble. For example, he recalled comments by former Federal Reserve chair Alan Greenspan in 2005, claiming there was no bubble in housing prices—just two years before the market crashed. Burry now warns that a similar situation might be unfolding with AI, suggesting that investors are ignoring important red flags and assuming the technology will lead to incredible profits.
Current Fed chair Jerome Powell has also downplayed bubble concerns, arguing that today’s AI companies are profitable. Burry finds this statement troubling. He sees it as reminiscent of the false reassurances during the dot-com era when he had bet against major players like Amazon.
Recently, a report indicated that nearly 60% of venture capitalists believe we’re in another tech bubble, particularly with AI. This sentiment matches Burry’s fears, as many investors seem to be overly optimistic about future growth without considering profitability.
As Burry continues to speak out, many users on social media express concern about the sustainability of the AI boom. They share articles and statistics supporting both sides of the debate, showing how divided opinions are on this topic.
For those interested in the intersection of technology and finance, Burry’s insights provide a fresh perspective, reminding us to be cautious about unchecked optimism in the market. History tends to repeat itself, and keeping a critical eye on investments could be key to avoiding pitfalls.
For a deeper dive into Burry’s views and the current market dynamics, you can read more in this Wall Street Journal article.
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