Joe Biden and his fellow liberal politicians have taken credit for anything positive related to the U.S. economy. They claim all is well with the economy and people are better off than before he took office.
However, Biden and his team have failed to look at what the average American faces day-to-day with inflation that hit historic levels. People have suffered with daily living costs where they must choose food over rent and gas for their car to get to their job where wages have fallen.
Biden and the liberals’ ivory tower sentiment toward the people may be hit with the “crash of a lifetime” sooner rather than later. The “everything” bubble has yet to burst, and it may be bigger than the Great Recession, according to Harry Dent, financial author and economist.
From Fox Business:
“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.”
Dent said the time span of this bubble is something the market has never seen before. He expects to see the S&P 500 go down 86% from the top, and the Nasdaq drop 92%. He also predicted that “hero” stocks, particularly in the technology sector, could drop by more than 90%.
“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.”
As Dent made his predictions, the markets moved closer to the halfway point for the year with all three major indexes finishing higher at the end of May. The tech-fueled Nasdaq topped all indexes, finishing up 6.9%. The S&P 500 was up 4.8% and the Dow Jones was up 2.3%.
Dent updated his prediction from last year to say that any market crash would likely be felt in early to mid-2025 when he expects markets to drop severely. He also expects the housing market to suffer this year after housing enjoyed years of higher prices. He credited this to $27 trillion in government stimulus money from 2008 to 2022.
Dent responded to critics who have called him a “radical” and accused him of fearmongering.
“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.”
While Dent’s predictions sound alarming, it’s worth considering that not all experts agree with his analysis. Some believe that the economy is more resilient and that other factors could mitigate a severe crash. It’s always important to take a balanced view and consider multiple perspectives before jumping to conclusions.
What do you think could happen?
Key Takeaways:
- A “radical” economist predicted that the stock market will crash worse than 2008.
- The “bubble of all bubbles” in the market is expected to burst sooner than later.
- More than 90% of stock market values could be gone if the prediction holds true.
Source: Fox Business
