"In the absence of Wall Street's reliance on the Fed, Burry's insurance plays could have further pushed up prices and signaled to everyone else that something was wrong."
Can you explain this point further? How did Burry's investments not raise the prices of credit default swaps? What does Wall Street rely on the Fed for that led to that result?
This is precisely what needs addressing. CDS are over the counter trades without a central clearinghouse. Therefore little data is available and the counter parties create terms blindly.
This is what they mean when talking about transparency.
Can you explain this point further? How did Burry's investments not raise the prices of credit default swaps? What does Wall Street rely on the Fed for that led to that result?