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An economist has warned that an ‘everything’ bubble is going to burst next year prompting the ‘biggest crash in our lifetimes.’
Harry Dent claims the effects of the crash will ‘be obvious’ by May and will slow the economy for over a decade.
He told Fox Digital: ‘If I’m right, it is going to be the biggest crash of our lifetime, most of it happening in 2024.
‘Since 2009, this has been 100 percent artificial, unprecedented money printing and deficits; $27 trillion over 15 years, to be exact. This is off the charts, 100 percent artificial, which means we’re in a dangerous state.’
He says the crash will be sparked by overvalued markets and excessive stimulus spending, which he says will create a far worse recession than other economists have predicted.
The worst crash of many people’s lives would mean it would have to surpass the hardship felt after 2008’s Great Recession – which was the worst economic downturn since the Great Depression.
Harry Dent has claimed he is ‘praying’ for the crash as it will send a message to the big banks
Dent said the crash is not an entirely bad thing: ‘I’m the guy that’s praying for a crash while everybody else is not. We need to get back down to normal, and we need to send a message to central banks.
‘This should be a lesson I don’t think we’ll ever revisit. I don’t think we’ll ever see a bubble for any of our lifetimes again.’
He added: ‘When this asset bubble bursts and the price of everything, especially housing, comes back down to reality, imagine, not only can you buy the house you want at half-off… you can buy twice as nice a house here for the same mortgage you were going to get before. How’s that for a Christmas present?’
Market bubbles are characterized by a rapid rise in stock prices, before a sharp fall and Dent says that sky-high prices are going to plummet next year.
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Dent predicts that the current bubble bursting will be similar to the Great Depression in the 1920s.
He said: ‘The Roaring 20s bubble was not an everything bubble.
‘This crash is not going to be a correction. It’s going to be more in the ’29 to ’32 level. And anybody who sat through that would have shot their stockbroker.’
Dent claims that the crash will be as bad as the Great Depression
He added: ‘This is the one time I’m telling you, do not listen to your financial adviser. Things are not going to come back to normal in a few years. We may never see these levels again.’
Dent has encouraged Americans to ‘get out of the way’ of the crash, warning that although they may miss ‘a little more gains’ by selling now, they could also ‘save massive losses.’
He said people will be ‘able to reinvest a year or year-and-a-half from now at unbelievably low prices and magnify your gains beyond compare.’
He said: ‘We’re still up there. We’re still near the highs, and that shouldn’t have happened. So you’ve gotten a gift… you’ve gotten this rebound where you get a second chance to get out near where you could have before.’
People will be hurt ‘the most’ by the real estate crash, which he says will drop housing prices back to 2012 prices.
He said: ‘That’s a 50% crash for the average house, which went down 34% in the last crash, more than the Great Depression, more than any time in history. That is what’s going to hurt people the most.’
The Dow Jones closed at 37,385 on Friday for the holiday reason. That is up from 33,203 on December 26 last year.
