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Michael Burry warns of next financial crisis

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Mortgage Professional America | 06 Jan 2016, 06:30 AM Agree 1
A leading player in the acclaimed novel-turned-movie The Big Short said that there are already signs that predict another major financial crash in the near future
  • Griff | | 06 Jan 2016, 12:10 PM Agree 1
    I only have my gut that tells me financial woes are not over. I don't have Burry's in depth market knowledge, but I do know too much money is concentrated at the 1% level. As long as lobbyists run our country only the wealthy will be well served. If we can turn the tables with a Congress that works FOR the people not for the corporations and banks we will see stability. Until then. we are living on the edge of a cliff waiting for the next bailout of the too bigs.
  • Jonathon | | 13 Jan 2016, 12:22 AM Agree 1
    This country is headed for disaster because many have been brainwashed to hate the productive people in society while they coddle the people who continually feed off the system. There was a time in our country when people looked up to the successful person and lectured the non productive members of society. Today, we have the opposite. This will not end well.
  • MoeJoe | | 18 Jan 2016, 05:43 PM Agree 0
    Jonathon makes a strong point. Yes. It stinks that the top 1% have so much control... but people need to look at the picture as a whole.

    If you take from the top 1% or increase minimum wage too drastically and too quickly or increase their taxes, they will in turn TAKE from their employees or just move to another country and take the jobs with them. They don't just accept the new rules and accept lower profits. They start by making all or most positions Part Time so that they do not have to pay benefits. If they have a retirement program, they stop matching contributing or make it less desireable or get rid of it altogether. Health insurance goes to cheaper company's which means employees get less coverage, higher premiums and deductibles - IF they qualify. Pensions... well, I am sure we can all guess why there are not very many of those anymore! One way or the other, they are going to make their money. The more they make, the more they TRY to take care of employees - at least in most cases. We cannot keep trying to make it on part time jobs with no benefits. Obama talking about all of these great jobs created is leaving out that most are part time and lower wage jobs and people are still working two and three jobs to make ends meet and barely at that. Unemployment is down because most no longer qualify for it. I'm not saying give the rich everything... I am just saying we need to be careful what we ask for because in the end it is going to hurt the middle class -not help.

    I am in the middle class. I was finally moving UP and out of the middle class, when the government (Democrats, by the way) basically took over the mortgage banking industry and cut off all small/medium size companies to get rid of the smaller players. Since that time (when they were supposed to be HELPING consumers), mortgage costs have gone up drastically and people needing smaller mortgages really have no place to get their mortgages done. Brokers were selling products CREATED by THE BIG LENDERS/BANKS. Brokers had nothing to do with the melt down caused by those mortgage products because they did not create them. Fraud, as we have all seen now, was in all aspects of the business -not just the smaller company's who had spent years making a name and building legitimate businesses which were taken away in a matter of months. Since when is the government supposed to have so much control that they can tell any person how much their "work" is worth and tell you what you can and can't make. Get ready world... they are going after many other job fields.
  • Bill Barksdale | | 19 Jan 2016, 05:04 PM Agree 0
    I agree with previous posts that there is just too much of our shared economy concentrated at the very top. This problem began in earnest during the Reagan years with the failed economic theories of Milton Friedman and the preposterous, infamous "Trickle Down Economic" theory. Reagan is the president who snatched Alan Greenspan from Wall Street and put him in charge of our national economy. Greenspan as a follower of Friedman theories and he was driving the train when it went off the rails at high speed at the end of the Bush presidency. Of course it was a democratic president, Clinton, along with a republican house that signed the death of the economic protection measure, Glass–Steagall Act of 1933, which once again allowed very dangerous banking practices that exacerbated the Great Depression financial collapse.

    The speeding train wreck of the "too big to fail", its antitrust issues and the obvious economic destabilization issues, which we have already experienced a big dose of PLUS the problem of lobby money buying our politicians - are contributing to the creation of another bubble.

    Clearly, to create a more stable economy we need to get more money back into a "middle class" population with a larger share in the economy. Having too much weight at the top makes anything "tippy" and inherently unstable. If the recent "recession" taught us anything it's that we are NOT just a capitalist economy, but rather capitalist-socialist economy. Big banks, investment houses and corporations were bailed out by U.S. tax payers, many of whom lost their retirement savings and homes to do that bail out. Where are the investigations and prosecutions of those responsible? Do we want to repeat this over and over again? It's time to to learn and move forward with new and better rules.
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