In The financial system is based on twelve promises that are lies, we mentioned that there were a number of people who understood, well before it “went public” in 2008, that the world had a major financial crisis on the docket. Dr. Michael Burry is one of those people. He and his tactics were profiled in the book The Big Short by Michael Lewis. Burry used his insight to make a great deal of money for himself and investors in his money management funds. Once Burry made that money, he knew he had made enough, he closed his funds, and quit the money management business.
Here is what he said recently while giving the commencement speech at the UCLA school of economics, available here, with this quote starting at 14:00 into the video:
In 2010, I published an op-ed in the New York Times posing what I thought was a valid question of the Federal Reserve, Congress, and the President: I saw the crisis coming, why did not the Fed? Never did any member of Congress, any member of government for that matter, reach out to me for an open collegial discussion on what went wrong or what could be done. Rather, within two weeks, all six of my defunct funds were audited. The Congressional Financial Crisis Inquiry Commission demanded all my e-mails and the list of people with whom I had conversed going back to 2003. And a little later the FBI showed up. A million in legal and accounting costs, and thousands of hours of time wasted, all because I asked questions. It seems they would pump me at gunpoint or not at all. That Summer the Federal Reserve put out a paper that concluded that nothing in the field of economics or finance could have predicted what happened with regards to the housing bust and subsequent economic fallout. Ben Bernanke continues to backfill this logic. And I fear that history is being written wrong yet again. The ignorance is willful.
This is how it is in the world these days. Those in charge in government, large corporations, and the media which they own will not tolerate truth about what is either their incompetence or their dishonesty or both. If you think you can get truth from them about what is transpiring, guess again. Relying on their claims is high risk behavior.