Michel Pireu Columnist

In an interview with Bloomberg News last week Michael Burry warned that the recent flood of money into index funds has parallels with the pre-2008 bubble in collateralised debt obligations that almost destroyed the global financial system.

Burry, who made a fortune betting against CDOs before the crisis, said index fund inflows are now distorting prices for stocks and bonds in much the same way CDOs did for subprime mortgages.

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