Top economist makes harrowing prediction set to happen within months
With the ongoing cost of living crisis, millions of Americans are still impacted by financial woes.
And while you'd like to think the economy may be turning the corner, a top economist has some pretty bleak predictions.
Speaking in an interview with Fox News Digital, Harry Dent, a financial author and economist, has warned we could be in for a bigger financial crash than the Great Recession.
Advert
He said: "In 1925 to ‘29, it was a natural bubble. There was no stimulus behind that, 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 been doing."
The financial expert added: "Flooding the economy with extra money forever might actually enhance the overall economy long-term. But we’ll only see when we see this bubble burst.
"And again, this bubble has been going 14 years. Instead of most bubbles [going] five to six, it’s been stretched higher, longer. So you’d have to expect a bigger crash than we got in 2008 to ’09."
While US stocks ended the month of May with gains, Dent worries about what might be on the horizon.
He added: "I think we’re going to see the S&P [Standard & Poor] go down 86 percent from the top, and the Nasdaq 92 percent. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98 percent. Boy, this is over."
"We have never seen [the] government sustain a totally artificial bubble for a decade and a half, and see what happens after that," Dent continued. "But I can tell you, there has not been one bubble, and this is far larger and longer, one major bubble in history that has not ended badly, period."
At the center of this supposed crash would be the real estate market, with Dent predicting that this year housing would see 2012 lows.
"No time in history has housing been so widely owned and so many people having second and sometimes third homes just for speculation," he added.
"If you understand what the real cycles are, you don’t have to buy the most expensive home in history right at the top of the market and then moan for 14 years while it goes through the next downturn, like ’29 to ’42 or ’68 to ’82."
Dent has previously received backlash for his hypothesis, with some people accusing him of fear mongering and calling it 'crazy'.
In response, he argued that he is just saying 'what I see'.
Callum Jones