'Big Short' investor Michael Burry says the latest Fed meeting points to trouble in the banking system

Group 1 - The Federal Reserve plans to start purchasing short-term US Treasury bills on December 12, totaling around $40 billion a month, to boost liquidity in markets and the banking sector [2][5] - The Fed's reserve balances currently stand at approximately $2.8 trillion, indicating a significant reliance on central bank support [3][5] - Michael Burry views the Fed's actions as a sign of systemic weakness in the US banking system, suggesting that the banks are becoming increasingly fragile [4][6] Group 2 - The purchase of short-term Treasurys marks the first meaningful expansion of the Fed's balance sheet since the end of its quantitative easing program in 2022 [6] - Burry expresses concern that the need for over $3 trillion in reserves from the Fed indicates a lack of strength in the banking system [5][6] - Following the Fed's announcement, stock markets surged, driven by optimism regarding the central bank's plans [5]