The economist has previously made accurate calls on major economic events
A top economist in the US has warned that there soon will be a bigger stock market crash than the Great Financial Crisis. Speaking to Fox News Digital, Harry Dent cautioned that the "everything" bubble has still yet to burst, and it may be a bigger crash than the Great Recession.
"From 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. Flooding the economy with extra money forever might enhance the overall economy long term. But we'll only see when we see this bubble burst,'', Mr Dent, who is also a Harvard Business School alum, said.
He noted that most bubbles go five to six years, but this one has been ongoing for 14 years. ''So you'd have to expect a bigger crash than we got in 2008 to '09,'' Mr Dent added,
When that bubble finally bursts, it could lead to a market downturn more significant than the 2007-2008 financial crisis.
''I think we're going to see the S&P go down 86% from the top, and the Nasdaq 92%. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98%. Boy, this is over,” he said, implying a multi-trillion market crash.
He further predicted that investors could see the fallout early to mid-next year, thanks to the Fed's rapid monetary policy tightening meant to control inflation. He also analysed the housing market, which he believes is at the centre of this potentially tragic bubble.
According to him, the US government is ultimately responsible for this decades-long, massive bubble that the economy has found itself in.
He said, ''The government created this bubble 100%… artificial, injecting a drug to artificially perform stronger. And again, everything from human life to history shows, you don't get something for nothing, and bubbles always burst… it's a much, much higher possibility than anybody gives it.''
Notably, the economist has previously made accurate calls on major economic events, including the Japanese asset price bubble burst in 1989 and the dot-com bubble burst in 2000. His predictions are based on a variety of factors, including demographic trends, economic cycles, and market analysis