With the ongoing cost of living crisis, millions of Americans are still affected by financial problems.
And while you’d like to think the economy might be on the upswing, one top economist has some pretty grim predictions.
Economist Harry Dent has some serious predictions. (Fox Business)
Speaking in an interview with Fox News Digital, Harry Dent, a financial author and economist, has warned that we could be in for a bigger financial crash than the Great Recession.
He said: “In 1925-29, it was a natural bubble. There was no stimulus behind it, artificial stimulus per se. So this is new. This has never happened.
“What do you do if you want to cure a hangover? You drink more. And that’s what they’ve done.”
The financial expert added: “Flooding the economy with extra money forever can improve the overall economy in the long run. But we will only see when we see this bubble burst.
The economist warned that we could face a bigger financial crash than the Great Recession. (Getty Stock Image)
“And again, this bubble has been going for 14 years. Instead of most bubbles [going] five to six, is stretched higher, longer. So you should expect a bigger clash than we had in 2008-09.”
As US stocks ended May with gains, Dent worries about what may be on the horizon.
He added: “I think we will see the S&P [Standard & Poor] down 86 percent from the top, and the Nasdaq down 92 percent. A hero stock like Nvidia, as good as it is, and it’s a great company, [goes] 98 percent drop. Boy, it’s over.”
Another financial crisis?! (Getty Stock Image)
“We have never seen [the] the government maintained a completely artificial bubble for a decade and a half, and look what happens after that,” Dent continued. “But I can tell you, there has been no bubble, and this one is much bigger and longer , a great bubble in history that didn’t end badly, period.”
At the center of this supposed crash would be the real estate market, with Dent predicting that this year housing will see the lowest levels of 2012.
“At no time in history has housing been so widely owned and so many people have had second and sometimes third homes purely for speculation,” he added.
“If you understand what real cycles are, you don’t have to buy the most expensive house in history right at the top of the market and then complain for 14 years as it goes into the next downturn, like 29 to 42. or from ’68 to ’82.”
Dent has previously received backlash for his hypothesis, with some people accusing him of fear-mongering and calling him “crazy”.
In response, he argued that he is simply saying ‘what I see’.
Featured image credit: NurPhoto/Yuichiro Chino/Getty Images
Topics: Money, US News
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