Economist Predicts ‘Crash Of A Lifetime’ Will Be Worse Than 2008 Recession

NEW YORK, NEW YORK - JUNE 14: Traders work on the floor of the New York Stock Exchange (NYSE) on June 14, 2022 in New York City. The Dow was up in morning trading following a drop on Monday of over 800 points, which sent the market into bear territory as fears of a possible recession loom. (Photo by Spencer Platt/Getty Images)
Traders work on the floor of the New York Stock Exchange (NYSE) on June 14, 2022 in New York City. The Dow was up in morning trading following a drop on Monday of over 800 points, which sent the market into bear territory as fears of a possible recession loom. (Photo by Spencer Platt/Getty Images)

OAN’s James Meyers
11:12 AM – Monday, June 10, 2024

Harry Dent, the outspoken financial author and economist, is not reversing course from his bold “crash of a lifetime” declaration from this past December. 

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During a discussion in an updated interview with Fox News Digital, Dent cautioned that the “everything” bubble has still yet to burst. However, he claimed that it could be a larger crash than the Great Recession. 

“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,” Dent said on Tuesday. “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 actually enhance the overall economy long-term. But we’ll only see when we see this bubble burst,” he added.  “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.”

Meanwhile, U.S. stocks ended the month of May with gains, as the Nasdaq finished at 6.9%. The S&P 500 was also up 4.8% and the Dow Jones was up 2.3%.

“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,” Dent stressed. 

“We have never seen [the] government sustain a totally artificial bubble for a decade and a half, and see what happens after that,” he 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.”

However, the only edit to Dent’s prediction is the timing, noting market bottoms are likely to become apparent sometime between early to mid-2025. 

Meanwhile, Dent previously predicted that the housing market would see 2012 lows this year, and claimed on Tuesday that U.S. homes have increased by double or more than what they’ll soon be worth. 

“No time in history has housing been so widely owned and so many people having second and sometimes third homes just for speculation,” Dent said, while pointing out countries like China and Japan are seeing a rising number of residents buy empty properties as collateral to a potential market crash.

During the interview, Dent also responded to critics who have called his hypothesis “crazy,” accusing him of “fear mongering.”

“I just say what I see and, frankly, don’t give a damn if people don’t like it, because you [have] got to choose: are you going to tell the truth, or are you going to make people happy?” Dent responded. “They call me a ‘perma-bear.’ This is absolutely, uncategorically B.S.”

“Looking at it from history and standing back, nothing’s more obvious,” Dent continued. “A lot of other bubbles in history just do not have the steepness or the magnitude. Why? We’ve never realized the power that central banks can have to just print money out of thin air.”

“There really is nowhere to hide except the safest bonds in the world,” Dent said. “We’re the largest economy in the world. We will endure this downturn. And if they can print money to create a bubble, they can print money to pay off their bonds.”

“In the Great Depression, the big crash came [from] 1929 to ’32, and then the follow-up [was] ’38 to ’42. It’s reversed [now], because all the stimulus we had [made] the 2009 crash more minor. The big crash is going to come on the back end,” Dent emphasized. “This is going to wash all this excess out of the markets, bring the markets down to where they should be so that the millennial generation can have a boom that is healthier and that they can invest their savings into for retirement.”

In December, Dent advised investors to move their capital out of the stock market. If he had to invest in something now, he said that he would personally “choose Bitcoin.”

“Because it’s in a leading sector now in this early stage that has bubbled the most. That’s how you know a leading sector; it crashes. Bitcoin’s already been down over 70%. We haven’t had a recession yet, so that’s how volatile it is,” he explained. “It crashes the most, that’s what I would buy if I could buy one thing two or three years from now near a bottom.”

But Dent also wants investors to remember: “The government created this bubble 100%… totally 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.”

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