re: Michael Burry calls passive investments/index funds a bubble

He says the small companies don't have enough outstanding stock for ALL the index funds out there. Might be true if the Vanguard Wilshire 5000, Fidelity Wilshire 5000 and Blackrock's fund bought shares in every single company. My understanding is they do not. They try to weight to each sector, and buy a few companies in each sector. And the different funds don't buy the same companies. Ie, their ownership is spread out. I think. I think I read that once.

Indexes are effective when there are enough active funds and individual owners to keep it liquid. Ie, you have a critical mass of actual people involved as well. We may not have that now; I'm not sure.