Michael Burry criticized financial and asset-market bubbles for transferring wealth to a small minority, saying the system is creating bubbles to enable arbitrage. He said large-scale wealth transfers are occurring through high corporate compensation and political arrangements. Burry said circular financing and arrangements originating from Washington, D.C. are making a few people extremely wealthy while most people worry about daily living costs. He argued the trend poses a serious threat to the health and survival of America’s “free republican system.” Burry has recently continued criticizing circular financing in the AI sector and previously named Nvidia as being at the center of the network. A prior 13F filing showed his Scion fund held put options on Nvidia and Palantir.