Michael Burry Warns Fed's $40B T-Bill Buys Expose Banking System Fragility

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Michael Burry has raised concerns that the Fed’s $40B monthly T-bill purchases reveal weaknesses in the US banking system. He points to the sector’s dependence on over $3T in reserves, warning of potential balance sheet expansion. The move follows the end of quantitative tightening, which reduced assets by $2.4T since 2022. Burry also notes the impact could ripple into crypto markets, as Bitcoin fell below $91,000. Amid global regulatory shifts like **Countering the Financing of Terrorism** and **EU Markets in Crypto-Assets Regulation**, liquidity moves remain under close watch.
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