Burry places a huge leveraged short position on WallSt put options The Big Short Version 2.0

a reply to: TonyS

Yes, that's why they are supposed to have reserves in the first place. That's the whole idea and literal definition of any reserve. To have a backup, something, that when SHTF you can fall back on your savings AKA "reserves".

It get's more complicated, reserves can also be food or anything you like to have. Your car has reserves.

And all these reserves are not to introduce trouble, but to feather it. With all respect, you got that really backwards.

a reply to: TDDAgain

The key might be this... The losses in China will do a lot of damage, until the point where BS walks

a reply to: anonentity

Indeed.

However, I was reacting to this sentence:

The liquidity crisis is the result of the big banks hoarding cash reserves to offset losses from bad loans and debt.

Wich is, evidently, not reality.

a reply to: TDDAgain

The crux of the matter of ignoring the ad, is they are defaulting, they have used other people's money to get rich and have lost it. It is the same in the West , so they are hiding the losses by digital sleight of hand, but the reality is that it will have to be rationed as the economies are no longer sustainable under the present system.

originally posted by: putnam6

originally posted by: intergalactic fire
Burry, the permabear

He's been wrong most of the time. Still waiting on his previous market crash predictions from the last decade.

This position was from a few months ago and looking at the markets since then he probably lost money and already is out of this position.

I don't know it's why I am asking, however, sure he has been wrong but, did he put up as much as he seems to have put up this time

and secondly, his position in the housing market lost mucho dinero for weeks and months, till it didn't

No, buying options are relatively cheap. It's not like he paid 1.6B for these options. If anything he might take a hair cut, depending in how long the options are.