Steve Eisman, the investor whose anticipate of the financial crisis was depicted in “The Big Short,” told CNBC on Thursday he has disbelieves about “the social utility of cryptocurrency.”
The Neuberger Berman portfolio manageress also confirmed his fund is short Deutsche Bank.
“Deutsche Bank has a hugely simple problem. It doesn’t make money. That’s a pretty sudden statement at this point 10 years after the crisis,” he prognosticated in a “Squawk Box” interview. “It’s a bit late in the game to try to solve the problem. … I contrive Deutsche has to shrink. I think Deutsche five years from now intention be a significantly smaller company.”
Regarding cryptocurrencies, he said current government-backed currency deal ins already serve the public efficiently.
“I have my doubts about it. My mistrusts center around the fact what’s the social utility of cryptocurrency?” he replied. “It’s good for speculation and good for money laundering. … I have no picture how to value [bitcoin] and I don’t think anyone else does either.”
Eisman is identified for being one of the few investors to profitably bet against subprime mortgage securities during the fiscal crisis. He was a key character in Michael Lewis’ best-selling book “The Big Short” and was depicted by actor Steve Carell in the film based on the book.
Deutsche Bank declined to comment for this narrative.