Leading economist predicts financial ‘crash of life’ within months

A top economist has warned that a “crash of life” will occur in 2025.

Harry Dent, a financial author and economist, has warned that we are facing a financial crash bigger than the Great Recession.

Speaking to Fox News, Dent said the “everything” bubble has yet to burst.

“In the years 1925-29, it was a natural bubble. There was no stimulus behind it, an artificial stimulus in itself. So this is new. That never happened,” Dent said Tuesday. “What do you do if you want to cure a hangover? You drink more. And that’s what they’ve done.”

“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,” he added. “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.”

US stocks ended May with gains, while the Nasdaq ended up 6.9 percent. Additionally, the S&P 500 rose 4.8 percent and the Dow Jones rose 2.3 percent.

But Dent highlighted what he thought was coming, “I think we’re going to see the S&P off 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 GREATER [goes] 98 percent drop. Boy, it’s over.”

“We have never seen [the] the government maintained a completely artificial bubble for a decade and a half, and look what happens next,” he continued. “But I can tell you, there has been no bubble, and this is much bigger and longer, a big bubble in history that didn’t end badly, period.”

Dent made the same claim in December, but has now edited his timing, saying the bottom of the market is likely to appear between early and mid-2025.

At the center of this bubble is real estate, with Dent predicting housing would see 2012 lows.

“Never in history has housing ownership been so widespread and so many people have second and sometimes third homes just for speculation,” Dent said, pointing to countries like China and Japan that are seeing a growing number of residents who buy empty properties as collateral. for a possible market crash.

“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 while you go through the next downturn, like ’29 to ’42. or from ’68 to ’82,” the author expanded, “or what it would have been, without all this $27 trillion stimulus, 2008-2022.

However, Dent has faced criticism after some called his hypothesis “crazy” and accused him of fear-mongering.

But Dent has hit back, arguing that he is just saying “what I see”.

“Looking at it from history and standing back, nothing is more obvious,” Dent continued. “Many other bubbles in history just don’t have the slope or size. Why? We have never understood the power central banks can have to print money out of thin air.”

Dent’s final message to investors was to remember: “The government created this bubble 100 percent… completely 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 bigger opportunity than anyone gives it.”

Sign upin our free weekly Indy100 newsletter

Have your say on our news democracy. Click the upvote icon at the top of the page to help raise this item through the indy100 rankings.

How to join free indy100 whatsapp channel