GO SEE THE BIG SHORT!

So you’re Michael Burry who gets his hair cut at Supercuts and doesn’t wear shoes and you know more than Alan Greenspan?

Michael Burry: Yes.

I Saw the Crisis Coming (Michael Burry vs. Alan Greenspan)

A Review:

A lesson on the MBS crisis

Peter Schiff howling about the coming housing bust: https://youtu.be/Z0YTY5TWtmU

and see the results: aerial-photos

Lake Las Vegas/Macdonald Ranch 05.2012

The movie provides a case study in belief in authority and incentive-based bias.   See how many more biases you can pick out: https://en.wikipedia.org/wiki/List_of_cognitive_biases

The movie can’t cover all the reasons behind the housing/debt crisis, but you will get a sense of what great investors have to go through when they take a massively contrarian position.  Note that Michael Burry started becoming worried about housing in 2003. Why?   He asked himself the simple question: How come real estate prices are RISING or NOT going down in Silicon Valley during the biggest tech bust in history during 2001/2002?

More on Burry

BURRY_2000 Annual Letter

BURRY_Scion_2006_4Q_RMBS_CDS_Primer_and_FAQ

BURRY_Scion1Q2001

BURRY_Scion2Q2001

Burry_Writeups

BURRY_The_Crisis_By_Alan_Greenspan-3-9-10

Mike Burry Lettersw

BURRY_Scion3Q2001

I remember being in the president’s office at Merrill Lynch in 1999 to see about selling www.art.com and the president pointed out through the glass partition to his trading floor and said see my risk team?   They are the best in the business! 

Update: http://thefelderreport.com/2016/01/15/the-big-short-is-only-half-the-story/

2 responses to “GO SEE THE BIG SHORT!

  1. Dundee Corp common seems super cheap? What am I missing? Most of the recent losses are write offs. With little debt seems like low risk (ignoring the client deposits as funded with similar amount of client AR). Particularly since common trading at 30% of book value!

    • The market is afraid of the values of their private holdings–perhaps book value overstated. Canadian dollar getting crushed, Canadian economy in a depression, all the markets it has been in have been in long-term bear markets, and tax loss selling. Basically, a perfect storm so 50% below book is to be expected.

      There are Canadian companies (EGDFF) at 20% of book.

      That said, you and Francis Chou of Chou Associates think it is cheap.

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