The Big Short (Movie) and DOGE
It is now 2025, and the actions which inspired the movie The Big Short, are almost long forgotten. That being said, there are many important lessons investors can learn from this move, especially when it comes to cryptocurrency.
Are you wondering what these two could possibly have in common? Not to worry, we will explain everything, keep reading.
The Big Short
The Big Short is a movie which covers many of the events which led to the 2008 stock market crash in the United States, and the fact that several individuals predicted that it would happen. To readers who haven’t watched the movie, I highly recommend it.
For our purposes, we will speak exclusively on Michael Burry, who is one of the main players in the event, as he took a very risky bet that the stock market crash would happen, and it did. Meaning while banks around the world were collapsing, Burry netted an impressive sum for himself.
According to investing professionals, the movie has almost a 92% accuracy rate, meaning while it isn’t 100% accurate, it does portray what happened both in Burry’s life and in the American economy prior to the crash. The main accuracy complaint is actually on the portrayal of another character entirely, as the movie was based on the book written by Burry himself.
Anyway, the point is that Michael Burry is a very smart individual and one of the only few to predict the 2008 crash by looking at a variety of markers that other investors of the time ignored. He also investigated in more detail, instead of just following the investment trends proposed by his colleagues. And now he has made a statement on the current US economy.
Michael Burry’s Opinion on Trump’s Budget Cuts
Michael Burry sounded the alarm on Trump’s budget cuts in March 2025. And unlike his position in 2007, where he stood to earn from the collapse of the economy, he has since left investing and states his opinions not from an investment standpoint.
In an interview, Michael Burry specified that the administration cuts applied by Trump and Doge could serve to permanently damage the economy, as these men are only looking at the short term and not the long term.
The first issue Burry states that this creates is increased unemployment. The US government directly released 60,000 employees, and most of them are highly skilled—meaning they will struggle to be absorbed into the jobs that are currently open in the American economy. Though 60,000 is a small number, Burry displays that many of these individuals made up the middle class and likely spent heavily on consumer extras the lower class can’t afford.
If that weren’t enough, Burry also discusses the cutting of government contracts. Many businesses in the private sector rely on the business of the US government to keep them afloat. So, although only 60,000 government workers lost their jobs directly, Burry expects layoffs to increase heavily in the coming months in the private sector as other businesses become unable to stay afloat without government money. These individuals would also be highly skilled, increasing the competition as they, and the former government workers, scour for jobs.
Now, these opinions were stated by Burry before the imposition of tariffs. And we all know that outlooks have grown darker in the time since these were imposed.
Either way, Michael Burry moved to short the stock market in early 2025 and we assume he has already made a return on his shorts. He has bet 90% of his assets on another pending crash.
Danny Moses and DOGE
If this weren’t surprising enough, Danny Moses, who was also portrayed in The Big Short, and also sounded the alarm in 2007, is also worried about America’s economic future.
Danny Moses warns investors that the cuts imposed by DOGE will be much further reaching than they realize. He specifically states that he believes economic growth will slow as a whole and that even though the US government only cut 60,000 jobs now, their other cuts will have long-term impacts, which will eventually result in 300,000-400,000 jobs being lost in the government sector alone.
This doesn’t even include the private sector Burry spoke about.
While Moses isn’t painting as bleak of a picture as Burry, he warns that pairing this with tariffs could have impacts the US government hasn’t even considered and that consumer spending is likely to decline. He recommends that investors take this time to diversify.
What Should You Do?
Honestly, there isn’t much the average American can do, other than ensuring they do their best to minimize debt and to avoid taking on new debt. If you work in the government sector, you should have a backup plan for work if your job were to fall through and try to ensure you have a few months of savings on hand so you don’t get into the danger area if you do lose your job.
From an investment standpoint, whether you believe things will be as bad as Burry stated or if this is just a momentary recession, take the time to diversify your portfolio. Both men estimate there will be a downturn in the S&P500 as a whole, meaning there aren’t many “safe” assets.
We, as always, recommend using cryptocurrency as a diversification tool, but it is important to know that these don’t promise returns either. If you truly think you may need to withdraw from your portfolio in the coming months, it is better to withdraw what you think you will need rather than risk losing it.
We plan to wait out the storm ourselves, but we know that isn’t possible for everyone, as many individuals take on far more risk than we do. Ultimately, your investment portfolio is your own, and you have to do what’s best for you, whether that means diversifying, divesting, or moving your investments to something else entirely. Either way, just be prepared for a long recession, as we trust Moses and Burry more than the US government.
