Michael Burry Interview

[BargainValueHunter]

http://www.scribd.com/fullscreen/37453934

 

The demands for transparency, the focus on volatility month to month, week to week,

performance reporting; the complete lack of patience on the part of many hedge fund investors.Also, the --

I think people forget, for a -- they think, oh, hedge fund managers are rich and they're powerful and they're

always happy.And that is not true.They're -- when -- when they're down, hedge fund managers, you

know, at least the ones I know -- feel it every bit as much as -- as -- as their clients, or worse.And it's a --

it's a -- it's a tough emotional roller coaster to manage.

[Liberty]

Awesome. First Klarman and now this! Thanks for posting!

[Liberty]

ERLICHMAN:  Well, then, what's your take on the housing market right now and what's going on in the

housing market right now?

 

BURRY:  It's -- it's an artificial market.  There's -- there are a tremendous number of homes where the

homeowners -- I think it's 2 point -- somewhere between 2.5 and three million homes where the

homeowners are more than nine months past due and are not getting notices that they're past due.  They're

just living there for free.  I actually know one that's been there for a few years without having to pay

anything.

 

There's this tri -- and the re -- and I think that Fannie and Freddie are basically being used for special

purpose vehicles by our government to support the housing market.  The private mortgage market is

practically non-existent.  Ninety-six, 97 percent of mortgages are -- are flowing through Fannie and Freddie

now.

 

It's -- I think Fannie and Freddie are in -- are -- are exercising a tremendous amount of power over the -- the

market by withholding properties from sale and not making -- and not forcing foreclosure -- the foreclosure

process.

 

I think that it would be best if the government just completely got out of the mortgage market and let -- and

let the housing -- because home prices are a function of income and -- and the leverage applied.  Everybody

buys these with credit.  So this -- we need -- I'm sorry.  I lost my train of thought.

 

ERLICHMAN:  That's OK.

 

Interesting stuff.

 

And I like how it's the raw transcript. Where did you find it?