Crisis Oracle Criticizing Dogecoin and SHIB Warns of “Permanent Decline”!

Michael Burry, who came to the agenda with his heavy criticism of Dogecoin (DOGE) and Shiba Inu (SHIB), made a new post. In his share, the expert investor talked about the macroeconomic situation. Accordingly, the founder of Scion Capital said that the situation will worsen. Burry’s comments were notable because he had previously predicted the subprime mortgage crisis without fail.

“The economic situation will become even worse”

Burry points to the increasingly dire white-collar employment in the United States. According to him, the white-collar employment bubble is bursting and there is a threat of a permanent decline in employment. In addition, Burry hypothesizes that working from the home will be seen as the fault of lousy employment in the long run. The Dogecoin critic added that he expects an economic collapse at the 2008 level soon. Burry’s remarks came at a remarkable time. Accordingly, the US Department of Labor will announce the first US unemployment applications on September 29.

Why are Burry’s insights valuable?

The US economy is grappling with rising inflation. The FED is taking an aggressive stance to curb inflation levels in the economy. Consumer price information for August showed that inflation was worse than expected. The Fed subsequently increased interest rates by another 75 basis points. Experts say that a mega increase of 100 basis points is also possible before the end of 2022. In this middle, the FED sees employment as a valuable direction of the economy.

A strong labor market has the potential to support the Fed’s hawkish stance. In the current economic environment, unemployment claims have another value. Due to aggressive monetary policies, the global economy is facing the threat of recession. If white-collar employment falls, it will be a valuable supplement to the recession arguments. Worse economics is causing investors to turn away from risk assets like Dogecoin, SHIB and Bitcoin. This could cause prices to drop further.

He previously criticized Dogecoin and SHIB

During the rise of Dogecoin and SHIB in 2021, Michael Burry made some posts targeting well-known chest coins. At that time, the price of DOGE and SHIB was flying with Elon Musk’s tweets. As we reported, Burry explained that the price increase due to Musk made Dogecoin “the biggest evidence of a major market bubble.” Subsequently, Burry continued to criticize chest coins. In late 2021, he tweeted that DOGE and SHIB were “meaningless”.

As a result, the famous crisis seer sees chest tokens like Dogecoin and SHIB as a bubble. He continues to speak this frequently. Attracting attention because of his knowledge of past crises, Burry now bets that the economy will experience a “permanent decline”. Last month, the famous investor shared a tweet with the words “sell all your assets”. This is very much in line with Burry’s collapse expectations.

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