Burry ran hedge fund Scion Capital and made billions shorting bundles of mispriced subprime mortgage securities in CDOs using credit default swaps. He was the first one to buy insurance from the big banks. Everyone else followed suit, from big hedge funds to other banks hedging their long exposure. See the 60 Minutes interview from March, 2010.
He still thinks the housing market is "artificial" and the Government needs to get out the way (video #2).
- There are 2.5-3 million homes where the homeowners are more than 9 months past due and are not getting notices, they are living there for free.
- Fannie and Freddie are special purposes vehicles by our Government to support the housing market, 96-97% of mortgages are flowing through Fannie and Freddie, 3-4% from the private market.
- They are withholding properties from sale and the foreclosure process.
Read the full article at Bloomberg.com. Also, watch Alan Greenspan respond to Michael Burry's New York Times op-ed on ABC News (and a challenge from Peter Schiff).