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Michael Burry Warns of Fed’s $40B T-Bill Purchase as Sign of Banking Fragility
Michael Burry Warns of Fed’s $40B T-Bill Purchase as Sign of Banking Fragility
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BTCCSquare news:
Michael Burry, the investor famed for predicting the 2008 financial crisis, has raised alarms over the Federal Reserve's plan to purchase $40 billion in Treasury bills monthly. Burry contends this MOVE masks systemic fragility rather than ensuring stability, citing the banking sector's ballooning reliance on Fed support—from $45 billion in reserves in 2007 to over $3 trillion today.
Fed Chair Jerome Powell framed the purchases as a liquidity management tool, but Burry criticized the timing as suspiciously convenient, coinciding with Treasury efforts to suppress rising 10-year yields. "This is weakness disguised as policy," he implied, suggesting the Fed is effectively propping up a debt market nearing $40 trillion.
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