the big shortHot off the press Michael Burry’s speech tonight Hunter. The speech took place at Vanderbilt University

Profiled in author Michael Lewis’ #1 best-selling book The Big Short, Michael Burry foresaw the financial crisis as early as 2005. Dr. Burry foresaw the failures of financial giants such as AIG, Fannie Mae, Freddie Mac, Countrywide Financial, and Washington Mutual, and actively bet against their survival. To see Burry’s testimony before The Financial Crisis Inquiry Commission click –here.

Here are some notes:

  • QE2 brings the governments motives into question
  • The “Toxic Twins”: fiat currency and an expansionary Fed will be a disaster
  • Glass Stegall needs a 2nd go
  • We are building a debtors’ prison for our children. Legacies are a fatal burden in a fast changing world
  • Don’t tolerate blind faith, figure things for yourself
  • Open a bank account in Canada
  • When asked how to improve the mortgage industry he said that the first step would be eliminating the government’s stance that they should incentivize home ownership. People are smart enough to make their own rent/buy decisions. He would also require originators to hold 50% of their production on their balance sheets.
  • He was very reluctant to reveal details of what he is investing in now
  • He has bought some farmland, but for very specific factors including currency (didn’t really expand on this

 

Full notes can be found here-http://www.distressed-debt-investing.com/2011/04/michael-burry-notes-from-vanderbilt.html