However, Mr Block said a vibrant stock market would do little to help the real economy.
He said: “When you have equity bubbles it redistributes to people who are basically lucky, as opposed to good. It takes from the many and distributes to the few, but those few aren’t generally the more capable people.”
Mention the name Carson Block to US business leaders and a look of horror will flash across their face.
The 46-year-old New Yorker has built a feared reputation for laying siege to boardrooms around the world.
His fund claims “do the work Wall Street won’t” by unearthing balance sheet shenanigans and other corporate chicanery.
“A typical thesis for us is one in which we expose wrongdoing by a small coterie of individuals,” Block said.
At businesses where ugly secrets are uncovered, Muddy Waters shorts the shares – borrowing them and selling them, hoping to make a profit from a slump in the stock price.
Muddy Waters made its name investigating Chinese businesses that listed on North American stock markets in the early 2010s. Its quarry is usually overseas businesses or smaller companies.
Its fire and brimstone approach makes Block’s latest short-selling target all the more compelling.
Last month he turned his guns on a property fund run by Wall Street financial titan Blackstone, which is led by billionaire Steve Schwarzman.
A blue chip business like this is not one where Muddy Waters usually finds much ammunition. Unlike past targets, however, Block doesn’t allege any wrongdoing or misdirection.
“We haven’t accused anybody of wrongdoing because we don’t see wrongdoing,” Block said. “They’re just basically caught in what we think is a perfect storm. They’re in the wrong place at the wrong time.”
Blackstone Mortgage Investment Trust, known as BXMT, is a $22bn (£17.3bn) book of IOUs. Landlords have been lent money by the trust to buy commercial property.
