Michael Burry Says Fed's New Treasury Buying Plan Shows US Banks Are Weaker Than They Look: 'Not A Sign Of Strength But A Sign Of Fragility'

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On Wednesday, Michael Burry, the investor best known from "The Big Short" for predicting the 2008 housing collapse, warned that the Federal Reserve's move to restart Treasury bill purchases is less ...

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href=https://www.benzinga.com/markets/economic-data/25/12/49324994/michael-burry-says-feds-new-treasury-buying-plan-shows-us-banks-are-weaker-than-they-look-not-a-sign-of-strength-but-a-sign-of-fragility><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>On Wednesday, Michael Burry, the investor best known from \"The Big Short\" for predicting the 2008 housing collapse, warned that the Federal Reserve's move to restart Treasury bill purchases is less ...</p>\n\n<a href=\"https://www.benzinga.com/markets/economic-data/25/12/49324994/michael-burry-says-feds-new-treasury-buying-plan-shows-us-banks-are-weaker-than-they-look-not-a-sign-of-strength-but-a-sign-of-fragility\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DPST","symbol_name":"Direxion每日三倍做多区域银行股ETF","start_time":0,"source_url":"https://www.benzinga.com/markets/economic-data/25/12/49324994/michael-burry-says-feds-new-treasury-buying-plan-shows-us-banks-are-weaker-than-they-look-not-a-sign-of-strength-but-a-sign-of-fragility","article_id":"2590617055","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2025/12/11/Order-Ends-Paper-Checks-Nationwide.jpeg?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/markets/economic-data/25/12/49324994/michael-burry-says-feds-new-treasury-buying-plan-shows-us-banks-are-weaker-than-they-look-not-a-sign-of-strength-but-a-sign-of-fragility","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2590617055","pubTimestamp":1765430700,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"Michael Burry warned that the Fed's renewed Treasury bill purchases signal growing weakness in the U.S. banking system, even as markets rallied on the central bank's latest rate cut.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"DPST":"Direxion每日三倍做多区域银行股ETF","KRE":"区域银行指数ETF-SPDR KBW","IAT":"安硕美国地区银行ETF","BK4585":"ETF&股票定投概念","KBWB":"银行ETF-PowerShares","KBE":"银行指数ETF-SPDR KBW","KRX":"KBW区域银行业指数","VFH":"Vanguard Financials ETF","XLF":"金融ETF"},"translate_title":"迈克尔·伯里表示，美联储新的国债购买计划表明美国银行比看起来更弱：“这不是实力的迹象，而是脆弱的迹象”","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KBE":1.5,"DPST":0.6,"VFH":0.6,"IAT":0.6,"KRX":0.6,"KBWB":0.6,"XLF":0.6,"KRE":0.6},"content_text":"On Wednesday, Michael Burry, the investor best known from \"The Big Short\" for predicting the 2008 housing collapse, warned that the Federal Reserve's move to restart Treasury bill purchases is less about stability and more about a financial system growing dependent on Fed support.\nBurry took to X and cited a Financial Times blog saying that the Fed's plan to begin \"reserve management purchases\" — or RMPs — signals growing fragility in the U.S. banking system.\nHe pointed to the central bank's decision to stop shrinking its balance sheet and prepare to buy roughly $35 billion to $45 billion in Treasury bills each month, a move analysts expect to begin in January.\n\"I would add that if the US Banking system can't function without $3+ trillion in reserves/life support from the Fed, that is not a sign of strength but a sign of fragility,\" he stated.\nHe noted that the system required only about $2.2 trillion before the 2023 banking turmoil and just $45 billion in 2007.\n\"So I'd say US Banks are getting weaker way too fast,\" he added.\nSee Also: Michael Burry Asks For Photos Of Warehoused Nvidia GPUs After Analyst Questions Jensen Huang’s Blackwell Shipment Numbers\nBurry also questioned the timing, noting that the Treasury has been issuing more short-term bills to avoid pushing 10-year yields higher.\nHe suggested that the Fed's decision to focus its buying on those same bills looked \"awfully convenient.\"\nBurry argued that the Fed now appears to expand its balance sheet after every crisis to avoid funding stress in the banking system — a dynamic he said helps explain the stock market's strength.\n\"The practical limit of this might be full nationalization of the US bond market – the Fed owns all $40 trillion US debt. So party on, I guess,\" he wrote.\nThe Fed formally ended quantitative tightening earlier this month after shedding about $2.4 trillion in assets since 2022. The move comes as funding markets, particularly the $12 trillion repo market, show increasing volatility.\nShort-term repo rates have repeatedly broken above the Fed's target range, raising concerns about liquidity.\nEconomists at Evercore ISI, Bank of America and Goldman Sachs said the Fed will likely roll out RMPs to rebuild a reserve buffer and stabilize overnight rates.\nMeanwhile, the Federal Reserve's third consecutive interest-rate cut boosted market sentiment on Wednesday, driving strong gains in several high-beta stocks linked to clean energy, crypto mining and space technology.\nThe Russell 2000 — tracked by the iShares Russell 2000 ETF (NYSE:IWM) — gained 1.36%.\nThe Dow Jones rose 1.05%, the S&P 500 added 0.67% and the Nasdaq 100 advanced 0.42%.\nRead Next:\nImage via Shutterstock/ trekandshoot\nDisclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2590617055","isCrawlerRequest":true}