The Big Short Issues Another Warning: The AI Bubble Is About to Burst, the U.S. Banking System Is Strong on the Surface but Weak Beneath
The prototype of "The Big Short," Michael Burry, has spoken out again! He claims that OpenAI is the next Netscape, directly pointing out the overwhelming risks in the AI technology sector. Previously, he shorted NVIDIA. British pension funds have also quietly reduced their positions in U.S. stocks due to concerns about the AI bubble.
On December 11, prior to the U.S. stock market opening, technology stocks collectively plunged: Oracle's earnings report fell short of expectations, plummeting more than 11%, and tech giants like NVIDIA and Microsoft followed suit, with all three major index futures falling sharply, triggering concerns about the AI valuation bubble.
At the same time, Burry criticized the Federal Reserve: restarting the purchase of short-term government bonds is not for stability, but rather that the financial system cannot operate without the Federal Reserve's "blood transfusion." He stated that today the banking system needs more than $3 trillion in reserves to function, far exceeding the $45 billion in 2007 and $2.2 trillion in 2023, with vulnerabilities that are visibly apparent.
Even more intriguing is that just as the Treasury aggressively issues short-term government bonds, the Federal Reserve announces a focus on purchasing them, with the timing being absurdly "coincidental." Burry complained that the Federal Reserve expands its balance sheet to rescue the market during every crisis, and if this trend continues, the $40 trillion debt in the U.S. may all be absorbed by the Federal Reserve.
Currently, the Federal Reserve has just ended quantitative tightening, the repo market is experiencing increased volatility, and interest rates are frequently "crossing the line." Major investment banks are stating that the Federal Reserve's bond purchases are a desperate measure to provide a safety net. How much longer can this frenzy in the U.S. stock market last? $BTC #美联储降息
