Michael Burry, famous for predicting the 2008 housing crash, has launched a Substack newsletter to share his bearish views on artificial intelligence. He warns of bubble territory in the market, drawing parallels to past booms like the dot-com era. Burry criticizes policymakers for ignoring the signs of another impending crash.
Burry’s new publication, “Cassandra Unchained,” comes with a $379 annual subscription fee. With 1.6 million followers on X, he aims to capitalize on his audience to share his warnings about the AI market. He references past bubble bursts and criticizes current policymakers for not heeding the signs of another crash.
Burry highlights the dismissal of profitability concerns and the massive capital expenditures being made in the AI market. He points out that investors are assuming exponential growth and overlooking warning signs, similar to the behavior seen during the dot-com era. Burry is openly bearish on companies like Nvidia and Palantir, believing they are overvalued.
Federal Reserve Chair Jerome Powell has downplayed bubble fears in the AI market, claiming that AI companies are profitable and different from past booms. Burry sees this as reminiscent of Alan Greenspan’s reassurances before the 2008 housing crash. He warns that history may be repeating itself, with policymakers once again failing to recognize the signs of an impending market crash.
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