Largest Asset Bubble Ever – Short the 30 Year Treasury – Michael Burry and The Everything Bubble

Video Closed Captions:

good morning good afternoon good evening

folks michael’s uber one rinse atlanta

time back with this long-running guest

mr greg dickerson how you doing sir

feeling great michael good to see you

nice to you as well i don’t know if

you’ve seen it but michael bury has

reactivated his twitter account this

thing goes on and off more like a light

switch but currently it is on and he is

out saying we are in the biggest bubble

ever he has been through two in his

investing career those were obviously

the dot-com and the real estate bubble

he is out saying biggest bubble ever

and uh you know a i wanted to talk to

you about michael bury you know who he

is uh what do you think uh just kind of

rap about that a little bit yeah yeah

exactly so a lot of people know michael

berry from the big short so for

everybody listening he has a twitter

account that he’ll delete tweets and

he’ll just you know delete the account

and then he’ll you know take it off put

it back on

um you know i think he has asperger’s or

something like that so he’s kind of you

know he’s kind of he’s he’s a little

wild and there’s nothing against people

that have no but i think he’s a little

just off and a little different you know

how he operates but um there is a

twitter account called the michael bury

archive and has all of his tweets so if

you want to follow him you got to follow

him there because he deletes the other

stuff and that archive grabs it he’s got

to know that so yeah

i’m not sure what he’s doing but anyways

yeah so he’s always been you know um a

contra trader he’s always i mean he made

his fortune calling the housing market

crisis literally researching you know

people’s mortgages looking at the

borrowers like went through thousands

and thousands of these things i think he

he i give him credit for and he was

early right he may not have been the

first but he was early and he went big

and then he went a little too early and

that’s what his tweet said the other day

is he’s been through several you know

crisis and bubbles to learn not to be

too early on shorting something yeah you

know so uh i think he’s learned his

lesson there because it cost him it cost

him and it was it was just you know it

almost ran about stressful yeah oh yeah

it almost it almost crushed him he

almost didn’t hold on long enough yeah

yeah i mean you know it’s easy to be a

bull right i mean you know a lot of

things go up when the fed’s doing what

it’s doing and has been doing it since

2009 it’s kind of hard not to be a bull

right i mean

it’s easy easy to be a bull the hardest

thing to be as a bear and be accurate

about it so to understand risk be able

to accurately calculate that risk and

then be able to sustain it when it

happens you know and you know that’s

your real you know counter trading your

contra trader right or your contra

investor understanding that and going

against the tide you know anybody can

make money going up in a bull market

yeah the real opportunities a lot of

times are in those down markets and you

know again i always talk about you leave

the market up and you lead the market

down you know and i’ve i’ve been you

know successful and profitable through

both of those through real estate even

as values dip you don’t want to catch a

falling knife but you want to lead that

market down you know and

there’s an art to that so you really

have to understand it and you know but

nobody wants to hear those things when

you’re in this huge bull market yeah but

what he’s talking about is

everything is in a bubble everywhere and

there’s no there’s no you know everybody

is calling it a bubble now on wall

street whereas other before they weren’t

now they are everybody’s talking about

how dangerous it is you know that it’s

just unprecedented levels and we’re

talking you know stocks bonds you know

treasuries are

are in a bubble you know the housing

market i mean everything everything oil

everything is in a bubble right now and

you know we’ve seen these things over

and over and over and we’ve seen cycles

the fed is now pinned they are losing if

not lost all credibility um you know

they’re flat out ignoring it because

there’s nothing they can do without

creating the worst financial crisis even

worse than know 809 if they act

appropriately

so they’re just going to ignore it and

let let it play out and just blame

pandemic blame you know whatever they

can blame and say hey we did what we

could do we printed we kept interest

rates low it wasn’t our fault you know

so um it’ll be interesting to see

if they take any action at all with

everything you know where we’re headed

now because you know we that inflation

is escalating rapidly yeah so that’s

what he’s warning about he’s just

warning that look this is unsustainable

it’s gonna pop

and uh he doesn’t know when it’s gonna

happen and uh you know he also made a

comment one time a lot of people didn’t

understand as he said you know like

bitcoin specifically he said if you

don’t understand

um the leverage that’s in bitcoin then

you don’t understand bitcoin and a lot

of people don’t they don’t understand

how leverage works in bitcoin and how

the largest exchange out there will give

you 100 200 you know times leverage so

you know you put 100 grand into an

exchange and be trading on 10 million

dollars oh my goodness really yeah oh

wow

exactly and the way that works is you

know you can deposit you know

100 000 worth of bitcoin over here or so

many bitcoin and if you’re a whale and

you’ve got you know a thousand bitcoin

and you deposit you know 100 of them

over here that turns into 200 times

leverage that you can get out there and

trade

uh you know without actually having to

sell your bitcoin so you can crop prices

up and drive prices and you know things

like that people just don’t understand

the leverages there and then these you

know um stable coins that are backed up

by commercial papers kind of similar to

the housing market you know what what

really take the housing market wasn’t

just a bad mortgage it was all the

leverage in the system because these

mortgages were levered up as securities

you know a hundred fold throughout the

financial system because of the way that

all works and the way banks lever up the

way these mortgages and derivatives were

created and levered up and the way all

of these things happen so that’s why

that was such a huge impact on the banks

you know so you know now

some of the financial markets and the

crypto markets and you know real estate

all happening at once i mean it’s it’s

it’s pretty big stuff

yeah i think there’s a couple of things

i’m really taking from michael bury

stuff and again i

i like to watch i like to watch people

that are kind of i appreciate what

michael did right again he he read the

mortgages right

like these these these cdos these

packages thousands of mortgages he’s

like reading dry legalese and you know i

respect that right as opposed to just

you know

playing momentum in a bull market right

because you’re right being a bear is is

hard

and um

you know the other thing i take from

michael is he says like you’re right

it’s assets everything is a bubble

and and then finally uh the last thing i

took from michael because i did a

research knowing you and i were talking

today he’s like if i could find a way to

short the 30-year treasury that’s the

trade today

yeah that’s what i mean like when people

say treasury’s in a bubble what do you

mean it’s only you know what what are

treasuries today like you know not even

two percent yet or no i don’t think so i

didn’t look yeah

1.6 you know 30 year might be might be

pushing two or a little bit over so what

i mean is the bubble is down so it goes

the opposite way and that’s why he’s

saying you really can’t technically

short you know a treasury

um you know but that’s that’s a

different kind of play all all in and of

itself i’m not sure where 30 year is i

think it’s over two percent now it would

have to be over two percent of the one i

would think i keep trying to find the

30-year

i can’t find it yeah so

yeah it’s it’s it’s very interesting

times and you know what um

what’s really interesting is now all of

the bulls of wall street are coming out

going hey this is a very dangerous game

that the fed is playing yeah and we’re

on a very unsustainable path you know

but the same time let’s just keep it

going while we can keep it going you

know but because there’s nowhere else to

go even treasuries you know those yields

are coming up a little bit but it’s

still risk on right now it’s not risk

off until the fed changes gears they

have not changed gears

you know

um

you know it’s it’s very tricky it’s very

tricky you know there has to be a

deleveraging

at some point

to the scale that we’re on and i mean

then we’re just passing trillions of

dollars in stimulus and infrastructure

spending which you know in an

inflationary period it’s just going to

add more inflation yeah

i don’t understand i don’t get it

we’re going to spend i don’t know call

it a trillion dollars between friends

and somehow that is janet yellen janet

yellen like

says we’re gonna spend a trillion

dollars

in hard infrastructure and it’s gonna

lower inflation i’m like what

i mean i can’t i i don’t see it i don’t

understand i mean

what am i missing

you know they they don’t get it either

okay good i’m not

they’re not putting gas in their car and

they’re not going to the grocery store

and they’re not you know seeing anything

everywhere you go price go up everywhere

because of this because of that because

of labor because of you know

transportation costs i mean you know

fuel surcharges you know

i mean every day you see something where

there’s a new surcharge being added to

some delivery service you know for this

now which you know rightfully so

absolutely

yeah

it’s just it’s just amazing you know

what’s happening right now and that

they’re just ignoring it going oh it’s

going to go away as soon as the

pandemic’s gone and guess what we’re two

years in the pandemic ain’t gone yeah

you know uh things haven’t changed and

you know this this you know the wage

inflation and

the the change in late in the labor

force that’s put you know an increase in

prices and you know increasing cost of

doing business on businesses that’s not

going anywhere you know so um you know

it’s very very interesting times and i’m

not quite sure what she’s thinking i

don’t know

if they fully get it or fully understand

because again none of them are operating

in business they don’t have to make a

profit so they they don’t fundamentally

understand business they don’t have to

you know that’s the problem with

government you know and like a lot of

people want to attack you know the

wealthy and this that and the other and

you know they’re not the problem the

problem is government you know they are

the ones that are spending the money

that are creating the problems the

wealthy are just using the illegal tax

you know loopholes and tax laws you know

to minimize their taxes so you know you

want you gotta change that and you know

yeah

if you want everybody to pay the same

amount then go to a flat tax you know

and

you know or a consumption tax and

everybody’s paying their fair share you

know instead of having all these

different things but

remember why tax loopholes were created

created by the politicians for power and

control over business industry and to

get money from wealthy you know so it’s

it’s you know don’t go after the wealthy

you got to go after the politicians and

somebody had responded to one of the

videos and said well how do we go after

politicians well you got to get involved

in your community you’ve got to expose

these things and you’ve got to vote

you’ve got to understand who’s getting

paid by who who’s writing the laws you

know and i’ll tell you who writes the

laws in this company number one it’s the

insurance

insurance is one of the most powerful

entities institutions on the planet they

write your laws because it’s all about

insurance having to pay so they’re

lobbying and spending hundreds of

millions of dollars a year to lobby

lawmakers so they get the laws written

the way they want to get them written so

they don’t have to pay

and then you have corporations and you

know wealthy individuals that are

contributing you know and and you know

that’s just on the books you know

there’s so much that goes on off the

books that you know

and just look at how you know all of the

politicians are enriching themselves

like you know bernie sanders and you

know elon musk if you saw that little i

did it for the weekend i did i always

forget you’re still on oh you know

bernie’s got a net worth of 3 million is

he giving that away to people you know

how much is he paying you know joe

biden’s very wealthy he’s 10 million

bucks you know

um i think elizabeth

you know

pelosi is 10x i mean she’s worth you

know i can’t remember what it is now but

it’s i’m gonna look it up

i think it’s a hundred million yeah

since she’s become speaker by you know

uh insider trading um so

you know that’s why the laws are where

they are and why they exist and you know

that’s who we have to crack down on as

politicians you gotta have term limits

you gotta you know they can’t be allowed

to trade and do these things while

they’re in office i mean you gotta you

know

people have to rise up and take control

back of this of the government you know

yeah i’m gonna look up i’m typing in

what is nancy pelosi’s net worth because

the last time i saw it was crazy and and

that’s really it yeah i mean really at

the end of the day you need term limits

at all levels okay all levels of

congress once you serve in government

you should not be allowed to serve in

you know private sector where you know

you can benefit from that service of

government you should be whatever you

did before you went and served when

you’re done you go back to that you

don’t stay in washington and continue to

leverage that you know power and

influence and

uh nancy pelosi

you’re not in 2015 it’s the first thing

i found

opensecrets.org is the source and again

i just went to google i have no skin in

the game in 2015 she was worth a hundred

million dollars and she has only gotten

richer

yeah and it’s not just you know it’s

both sides of the aisle so it’s oh yeah

it’s democrats all of them you know it’s

all politicians you know most of them

are you know maybe they start out

thinking hey i want to make a difference

but as soon as their pockets get you

know filled up a little bit you know

they start heading down that that path

and you know the streets are paid with

gold and you know dc and state capitals

you know so that’s where the money is

made and the deals go down so anyways

long story short that’s you know who we

need to as a nation to be you know going

after and reigning in is is the

lawmakers because that’s where all these

laws are created you know it’s not the

wealthy that are creating jobs

opportunity they’re getting rich sure

you know and i mean it’s their

prerogative what they do with their

money you know just like anybody else so

i just found one for 20 20. she’s now

worth 190 million dollars yeah

yeah and

exactly i mean she’s doubling it every

year because you know she’s got the

inside skinny you know and all this

money that’s being put out why do you

think it keeps getting put out you know

why do you think let me look at all the

fed people that were trading and selling

all their stocks right before the peak

you know yeah that’s

yeah that that actually is one of the

reasons i think i don’t know if we’ve

talked about this but i think jerome

powell will not be renominated because

of that reason

the fed knows if they stop printing and

if they raise interest rates market goes

down

what does that do to their own personal

net worth yeah you know what i’m saying

they know i mean so they have a vested

interest to keep pumping and keep

pumping it up you know and all their you

know i mean it’s just it’s a game and

you know that’s how it works and you

know there’s a lot of people that have

benefited from that game retirees and

people that are in the markets and those

types of things but now it’s very

dangerous and a lot of people are

getting drawn into the markets and

they’re going to get they’re going to

get

you know hurt when it does you know

deliver and it’s going to deleverage at

some point yeah i agree with that well

do me a favor uh greg how can people

follow you because you do amazing stuff

every day

yeah gregdickerson.com that’s where all

my info is youtube

podcastgregdickerson.com

very cool man thanks again

 

Leave a comment

Your email address will not be published.