The US government entered its 35th day of shutdown. The debt rose by US$600 billion in one month. China continues to sell off Treasuries.

And Michael Burry bet everything against AI.

The market is dangerous! ⚠️

The shutdown is already the longest in history — and it's expected to get worse.

It's been 35 days without an approved budget.

The historical average is 8.

The expectation now is that the shutdown will last until December 1st — 61 days, almost double the previous record.

All this at a time when the Treasury needs more funding, and the Fed needs more data.

During the shutdown, the debt skyrocketed by US$600 billion.

Even with the government paralyzed, the Treasury continues issuing.

That's more than US$17 billion per day, raising the total debt to US$38 trillion.

The market is already noticing the distortion: the risk premium on long-term bonds has soared.

China continues to sell off Treasuries

The Chinese share among foreign holders has fallen to 8%, the lowest level in 22 years.

This reduces external appetite for American debt — and forces the Fed or local banks themselves to absorb the excess.

Wall Street Begins to Prepare for Adjustment

During a conference in Hong Kong, three giants began to express concern:

– Mike Gitlin, CEO of Capital Group (US$3 trillion under management), said that assets are between “fair and overvalued,” but far from being cheap.

– Ted Pick, CEO of Morgan Stanley, stated that a 10% to 15% drop “would be healthy” and part of the cycle.

– David Solomon, CEO of Goldman Sachs, recommended that investors maintain their positions but review their allocations:

“Double-digit drops happen even in positive cycles — and help to reassess prices.”

Meanwhile, the technology sector is weakening in the session.

Palantir, a software company that provides AI solutions to governments and large corporations, plummeted 14% from its high after its earnings report.

Even with strong revenue, the market has begun to doubt its valuation—following a surreal multiple expansion fueled by AI and defense hype.

Michael Burry bet against the bubble

The legendary investor who predicted the 2008 crisis is now focusing all his efforts on a major correction in AI.

He bought put options on:

– 5 million shares of Palantir – 1 million shares of Nvidia

The bet against PLTR represents 66% of Scion Capital's portfolio.

And he left a message hanging in the air:

“Sometimes we see bubbles. Sometimes there’s something we can do about it. Sometimes the only winning move is not to play.”

Bury isn’t just short-stakes.

He’s extremely pessimistic about the current situation.

This is the backdrop to the current tension:

– CEOs urging caution – American debt exploding – China reducing exposure – Endless shutdowns – AI with stretched multiples – And the man who bet against subprime mortgages is now obsessed with the new fever.