Alright, let's get one thing straight: Michael Burry. The guy made a killing betting against the housing market back in '08. Big deal. Doesn't make him Nostradamus. But everyone hangs on his every word like he's got some kinda crystal ball.
The Burry Short: AI's "Final Reckoning?"
So now he's shorting Nvidia and Palantir. Big time. Puts worth almost a billion bucks. A BILLION. Against AI. Because, according to some analyst quoted, it's the "AI bubble's final reckoning." Michael Burry, of “Big Short” fame, discloses ~$1.1 billion options bet against Nvidia and Palantir
Give me a break.
It's all about the money. Burry made a killing before, so everyone's convinced he's right again. But what if he's just… wrong this time? What if AI is the future, and he's just stuck in 2008, yelling at clouds?
He's comparing it to The Emperor's New Clothes. "Everyone knows AI is a bubble, but it's easier to pretend not to see it than risk calling it out." Says who? Says the guy who's betting a billion dollars that he's smarter than everyone else.
And honestly, this whole "AI bubble" thing... look, the stock market is basically a giant casino, and AI is the new shiny slot machine. People are gonna throw money at it until it either pays out big or blows up in their faces. Burry's betting on the latter. Fine. But don't act like he's doing us some kinda public service.
Buffett's Indicator: Another Red Flag?
Oh, and Buffett's indicator is flashing red too. The ratio of total US stock market cap to GDP is at some insane high. Higher than the dot-com bubble, higher than anything. "Playing with fire," they say. Michael Burry, Warren Buffett Flash Red Warnings for November as Markets Overheat
Okay, but is it really that simple? The world's changed since the dot-com era. Globalization, quantitative easing, meme stocks... the economy ain't what it used to be. So, can we even compare these situations? Or is it just a convenient narrative for the doomsayers?
And speaking of doomsayers, this is about the time my idiot cousin starts hitting me up for investment advice. Last time, he sank his whole stimulus check into Dogecoin based on a TikTok video. Genius.
Burry's got puts stretching to 2026 and 2027. He's in it for the long haul. He's not just betting on a correction; he's betting on a full-blown collapse. Is he seeing something we're not? Or is he just a grumpy dude who misses the good ol' days when you could buy a house for a nickel and a handshake?
It's not like Burry's always right. Remember all the other "crashes" he's predicted that never quite panned out? But I guess nobody remembers those. Only the one time he actually nailed it.
So, What's the Real Story?
Look, I ain't saying Burry's wrong. Maybe the AI hype is overblown. Maybe the market is due for a correction. But let's be real: this is all speculation. Educated guesses, sure, but still guesses. And the fact that everyone's treating Burry like some kinda guru just proves how messed up the whole system is. He made a lucky call once, and now we're supposed to trust him with our life savings? Give me a freakin' break.