Michael bury predicted the dot-com bubble, the 2008 recession and also paved the way for the rise of gamestop with each short-term event bury made millions, and sometimes even billions. Michael bury now believes that the biggest crash in u.s history is coming soon and just like every other prediction. Brewery is betting. Large amounts of money on it.

If burries prediction is correct, the stock and crypto market could fall as much as 95 percent. This video will go in depth on why berry is betting. Billions on an upcoming crash in the entire financial market when michael bury makes a bold prediction. You have to take him seriously.

Unlike many other market crash, predictors brewery has hundreds of millions of dollars on the line and also has a phenomenal track record from the year 2000 to the first quarter of 2008 bury generated massive amounts of money for his investors, as he averaged a return of 28.6 Per year, and if you thought berry was a one-time wonder, that's simply not the case since the beginning of 2016, his new fund, scion asset management, has averaged a return of 22.8 per year. These numbers are outstanding, especially for his investing track record of 14 years. Given this information, it's important that you at least see what brewery has to say, even if you have any preconceived notions, large institutions and powerful government leaders do not want you to see what i'm about to show you. In fact, shortly after the sec visited michael bury, his twitter account was mysteriously deleted.

This led me to search through immense amounts of deleted tweets to reveal brewery's most unprecedented warning. Ever michael, bury isn't just predicting a stock market crash. He is predicting the collapse of america. Burrie believes that this impending collapse will affect almost every asset, including cryptocurrencies gold stocks, real estate bonds and much more, but before we get into why billy thinks every asset class will collapse.

We must address the elephant in the room and that is inflation. Almost everything in bury's massive bet ties down to upcoming inflation in the us dollar. In bury's own words, the u.s government is inviting inflation with its mmt tinged policies. Brisk debt gdp m2 increases, while retail sales pmi stage 5 recovery, trillions, more stimulus and reopening to boost demand as employee and supply chain costs.

Skyrocket, paradigm shift, bury's whole argument, centers around the devastating effects of the modern monetary theory or mmt in short form. Mmt is a macroeconomic theory that claims that government should borrow or print money until their economy reaches full employment, in other words, the theory states that, in a recession, government should increase their currency's money supply until the unemployment rate reaches normal levels. Mmt is being used today by the federal reserve, but there are some major concerns about the concept. First of all, u.s debt, as a percentage of gdp, is currently reaching all-time highs.

Additionally, m2 money, which is a tracker for the total money supply, has reached all-time highs. All of this money, printing and borrowing is occurring, while businesses are already recovering. We can see this in the u.s purchasing managers index or pmi in short form. The pmi is an index that tracks whether or not businesses are in good condition.

Over the past few months, the pmi has exceeded pre-pandemic highs. As a result of this, many people are wondering why the us government is still printing more money. Consumer prices are already increasing all over the board, as supply chains are failing to meet. Demand michael bury believes that this situation is very similar to how the german market experienced hyperinflation in the early 1920s bury quoted an article that said, prices in germany were steady and both business and the stock market were booming.

The exchange rate of the mark against the dollar and other currencies actually rose for a time, and the mark was momentarily the strongest currency in the world. On inflation's eve, germany's situation is similar to what's occurring right now. The u.s dollar is the strongest currency in the world. Consumer prices are increasing but are still relatively steady.

The stock market is booming. The us dollar has also been going up over the past few months, but we then continued on by quoting side by side with the wealth with the pockets of poverty. Greater numbers of people remained on the outside of the easy money looking in, but not able to enter. The crime rate soared in simple terms.

Only the wealthy people in germany could access the easy money investments. So people in poverty started to turn to crime as a solution. These investments were easy for a reason. The article stated that almost any kind of business could make money.

Business failures and bankruptcies became few. The boom suspended the normal processes of natural selection, by which the non-essential and the ineffective otherwise would have been called out speculation alone, while adding nothing to germany's wealth became one of its largest activities. The fever to join in turning a quick mark infected nearly all classes. Everyone from the elevator operating up was playing the market with such high retail and institutional investing activity.

German brokers couldn't even keep up with the trading paperwork. This led the robin hood of germany force to occasionally close down in order to work on the company's backlog of trades. What i just mentioned is very similar to the current situation in the u.s. Many assets are very speculative and have reached all-time highs.

Burley believes that we are currently in the greatest speculative bubble of all times. In all things by two orders of magnitude. After this speculative bubble is over. Birdie believes that massive consequences are coming following the immense speculation in germany.

A huge collapse occurred. The article continued to explain that all the marks that existed in the world in the summer of 1922 were not worth enough by november of 1923 to buy a single newspaper or a tram ticket. That was the spectacular part of the collapse, but most of the real loss in money wealth had been suffered much earlier. In other words, following the speculative bubble, germany's financial market collapsed.

However, german citizens didn't lose their money from the collapse they already lost it years ago. From speculation and inflation, but they just didn't know it at the time. Throughout these years the structure was quietly building itself up for the blow. Germany's hashtag inflation cycle ran not for a year, but for nine years, representing eight years of gestation, and only one year of hashtag collapse bury added his own comment by saying written in 1974, read 1914 to 1923 2010-2021 gestation.

Brewery is essentially saying that germany's financial market experienced 8 years of gestation before it popped. This information might sound a bit frightening, but there are ways that investors, like you and me - can prepare. A typical investor would tell you that to prepare for inflation, you should invest in inflation, protected assets, including real estate, diamonds, gold, commodities and collectibles. However, brewery thinks that investing in these assets would be a stubborn move to make in february of 2021 michael burry stated historically, this chart shows good places to be during significant, but relatively moderate inflation in a modern hashtag hyperinflation best assets might be somewhat different in venezuela.

Argentina, zimbabwe, etc even farmland wasn't safe from confiscation or punitive taxation. Bury is essentially telling us that in times of crisis, the government will try to control everyone's assets, including gold and bitcoin. He further explains that in an inflationary crisis, governments will move to squash competitors in the currency arena bitcoin gold. Some might say that bitcoin is decentralized, so the government won't be able to control it.

Nevertheless, burrie sees bigger problems with bitcoin. Crypto has a lot of potential over the long term, but people have taken on way too much leverage in the sector as a result, burri believes that the crypto bull run will likely not be sustainable, because there is a massive amount of leverage within crypto, a small Dip in price could initiate a huge downward spiral. This is because when one crypto investor and margin loses money, they will get margin called, which leads prices to fall because prices fell. Other investors will now get margin called as well leading prices to fall even more.

This leads more investors to get margin called, causing prices to fall again. This downward cycle could potentially continue until everyone is margin called in bury's own words. If you do not know how much leverage is involved in the run-up of crypto, you may not know enough to own it. The interesting aspect of bury's prediction is that he believes almost everything will be negatively impacted buried, stated that fads today, which include bitcoin evs software's as a service and meme stocks, are like housing in 2007 in fiverr.com.com and routers in 1999..

On the whole, not wrong. Just driven by speculative fervor to insane heights from which the fall will be dramatic and painful frauds too, the world's common enron of today brewery is saying that almost all stocks, cryptocurrencies commodities, gold and real estate are doomed. So if everything is going to crash, what should we invest in before we get into michael brewery's massive moves in his portfolio? There are four important concepts to understand: with inflation, capital costs, input, costs, pricing, power and interest rates. Those four concepts might sound boring on the surface, but they are essential to crushing the market during an inflationary period of time.

Capital costs are one-time expenses that are used to manufacture a product or service input. Costs are recurring, expenses used to create a product or service. During an inflationary environment, the goal is to invest in companies that maximize capital costs and minimize input costs. Warren buffett once said that, in an inflationary world, a tow bridge would be a great thing to own, because you've laid out the capital costs you built it in old dollars and you don't have to keep replacing it.

A tow bridge has plenty of pricing power and also has little to no input costs. People won't stop going through tow bridges because the price increased. On the other hand, people may stop buying products from a business like general motors if the price doubled, not only that, but because gm has large input costs that increase during times of inflation, the automaker likely won't stay profitable. Input costs also have another issue, which is that prices have to constantly change.

For example, an airline need to check fuel prices continuously and reprice airline tickets. Accordingly, this is a major problem during times of high inflation. The next factor to look for is pricing power, which is a company's ability to raise prices. Buffett sees this as the most important factor when analyzing a stock buffett said that the single most important decision in evaluating a business is pricing.

Power you've got the power to raise prices without losing business to a competitor and you've got a very good business. The last factor to watch for is the effect of interest rates. When high inflation occurs, frequent borrowers will have to constantly borrow loans at incredibly high rates. During inflationary times, higher loan rates are devastating for borrowers because of the increased cost of capital.

With those four concepts in mind, it's easy to see why burry is investing in the stocks and options in his portfolio and for a quick summary of options. Put options are contracts, betting that a stock will fall, whereas call options are contracts, betting that a stock will increase. Michael bury's largest position is in tesla put options. His tesla put options cover over 731 million dollars worth of tesla stock, which is an increase of 34 percent from the prior quarter.

Brewery also owns put options covering over 280 million dollars worth of the ishares 20 plus year treasury bond etf, which is an increase of 53 percent from the previous quarter. Brewery also owns put options on the arc: invest, innovation, etf or ark. His put options on adr kkk cover over 30 million dollars worth of the fund brewery, also owns call options on a variety of stocks. His two biggest call option positions are facebook and google brewery's facebook call options cover over 327 million dollars worth of facebook stock.

An increase of 71 percent from the prior quarter brewery only increased. His google call options by 14, which means that his options now cover over 230 million dollars worth of google brewery's other call options cover 130 million dollars worth of mccaskin corporation 58 million dollars of craft times, 53 million dollars of walmart 48 million dollars of cardinal health. 43 million dollars of cvs and 9 million dollars of a fund that shorts treasury bonds note that these dollar values are just for the stocks that are covered in his option contracts. This is not equal to the premium of the contracts which are not disclosed michael brewery's options.

Portfolio can be organized into three different components: inflation, hedges growth stocks and the bond market for brewery's inflation, hedges. All of the call options that he owns are on companies with little to no input costs, facebook and google, which are broly's two largest call option. Positions are very similar to the tow bridge example that i mentioned earlier. However, it's even better because in this case the tow bridge is free for all users.

Users of facebook, instagram and whatsapp won't stop using these apps because of inflation. As a result, facebook always has pricing power with its advertisers and can raise prices if they want to. Google is in a similar scenario, but with the google search engine and youtube. Instead, both facebook and google have sticky users which require little to no input costs.

Similar fundamentals can also be seen with all of bury's other inflation hedges when it comes to growth stocks. Brewery is betting on increasing interest rates, as i covered previously. High interest rates hurt growth stocks the most because growing companies have to constantly borrow money. This can be seen in bury's bet against tesla and the arc innovation etf.

The last component of brewery's portfolio is centered around the bond market. Michael burrie believes that interest rates will increase, which includes bond yields too. Treasury bonds are simply just loans from the government and therefore bond yields must go up when inflation increases when bond yields increase bond prices must decrease. Brewery is betting that bond prices will decrease by buying put options in a bond etf and purchasing calls in an etf that short spawns.

To sum it all up, michael, bury thinks inflation is about to take off and destroy a multitude of financial assets. If what burry is predicting actually becomes true that he may be featured in the big short too, let me know what you think about michael brewery's bet down below. If you enjoyed this video, please hit the like button and subscribe and i'll see you in the next one.