In a series of tweets, Michael Burry said there will be “terrible consequences” if student loans are forgiven. A bailout would lead to higher college tuition and only compound the debt crisis, he warned. The fund manager previously issued another grim warning around stocks by simply tweeting: “Sell.” Loading Something is loading.
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Michael Burry said there will be “terrible consequences” if student debt is cancelled.
As the Supreme Court considers President Joe Biden’s student loan forgiveness plan, Burry wrote in a series of tweets that the debt crisis was “built on a foundation of terrible major choices.”
A bailout would lead to higher college tuition and only compound the problem further, he warned.
The Scion Capital chief added: “Bailing generations out of those bad choices will mean more bad choices, tuition hikes, and terrible consequences for America.”
—Cassandra B.C. (@michaeljburry) March 1, 2023Millions of student loan borrowers could see up to $20,000 of their debt forgiven as a result of Biden’s plan. The Supreme Court will also determine when payments for federal student loans will resume after a nearly three-year, COVID-related pause.
The fund manager of “Big Short” fame shared his personal experience with student loans as well: “When I left residency at Stanford to gamble my future on what was to become, I had well into six figures of educational debt. I was damned sure I was going to pay it off,” Burry tweeted Wednesday.
He is known as one of the first to bet against the housing market prior to the financial crisis in 2008.
The 51-year-old has become a notable markets figure for his dire warnings and often ominous predictions around the economy.
Earlier this year, Burry appeared to have major doubts about the US stock market’s stunning rally. Ahead of the US central bank’s meeting last month, Burry tweeted a single word in response: “Sell.”