Michael Burry of „The Big Short“ fame wrote that tapping Venezuela’s oil could boost the US economy and hurt China, Russia, Canada, and Mexico.
Michael Burry says the US raid on Venezuela is a much bigger deal than the markets‘ muted reaction suggests.
The investor of „The Big Short“ fame, who recently pivoted from running a hedge fund to writing on Substack, published a post early Monday saying the „game just changed“ in the mid to long term, and „markets are not pricing in all that may come of this weekend’s events.“
„This is a paradigm shift despite the markets yawning“, he later wrote on X.
Benchmark oil prices climbed less than 1% on Monday, and US stock futures opened higher, after the US captured President Nicolás Maduro over the weekend and President Trump said America would „run“ the oil-rich country for the time being.
The seizure was a „shot across China’s bow“, Burry wrote, pointing to billions of dollars in loans that China has made to Venezuela under its Belt and Road Initiative (BRI), which were collateralized using future oil output that is „now in US hands.
