Billionaire issues dire crypto warning
made billions of dollars by buying credit default swaps on subprime mortgage-backed bonds as the housing bubble collapsed.
Asked when he thinks a recession will hit, Greene guessed it might come in the first or second quarter of 2023."Next spring [we'll] definitely be in a much slower economy,” he said. “If this recession really happens, you'll have all kinds of people stopping their construction projects and laying people off and [you’ll] start to see unemployment creep up quickly.”
He also sees a parallel between the subprime mortgage crisis of 2007 and the booming stock market and crypto wave of 2021. “It's like when I was doing the subprime short [betting that the value of subprime mortgages would fall] and I remember saying, 'Who's on the other side of this trade?' These mortgage-backed securities had almost no possibility of being paid back,” he said.
Unlike his successful bets against the housing market in the Great Recession, Greene isn’t shorting anything this time around. Asked what he would do if he was more open to taking risks, he outlined a potential strategy."If I were more aggressive, because I saw this [bubble] happening, I would have sold more at the top. I would have built a war chest and been sitting here waiting for opportunities [to buy at lower values],” Greene said.
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