Did Michael Burry predict a recession?

Investor Michael Burry, who rose to fame when he predicted the collapse of the U.S. housing bubble before the 2008 financial crisis, has warned that the U.S. economy is likely to enter a recession this year.

What does a recession mean?

A recession is a significant, widespread, and prolonged downturn in economic activity. A common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth mean recession, although more complex formulas are also used.

What is a rolling recession?

A rolling recession is when some industries contract and suffer job losses, while others continue to grow, leaving the overall GDP growth positive, but low by historical standards. Klachkin isn’t the only forecaster arguing a rolling recession is here.

Are recessions caused by external factors?

Yes, according to modern economic thought. Prior to the late 19th century, most economists believed recessions were caused by external factors, like wars or weather events. Neoclassical economic thinkers developed the idea of business cycles, alternating peaks and troughs of economic expansion and contraction.