Market crash worse than the 2008 recession, warns Economist Harvey Dent

NEW DELHI: Financial author and economist predicted another “crash of a lifetime,” which could be worse than the 2008 crash. In a recent interview with Fox News Digital, Dent warned that the “everything” bubble has not yet burst, and the resulting crash could be more severe than the Great Recession.
Dent highlighted the unique nature of the current situation, stating, “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.” He likened the government’s response to attempting to cure a hangover by drinking more alcohol. Dent suggested that the long-term effects of continuously pumping money into the economy remain to be seen, but he expects a larger crash than the one experienced in 2008-2009 due to the prolonged duration of the current bubble.
Despite the strong performance of US stocks in May, with the Nasdaq, S&P 500, and Dow Jones all posting gains, Dent predicts significant decline. “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,” said the economist.
Dent has slightly adjusted the timing of his prediction, now expecting market bottoms to occur between early and mid-2025. He identifies the real estate market as the epicenter of the bubble, claiming that US homes have already increased in value by double or more than their future worth. Dent points to the widespread ownership of homes and the prevalence of speculative second and third home purchases as contributing factors.
In response to critics who label his hypotheses as “crazy” or accuse him of fearmongering, Dent said “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?” He rejects the “perma-bear” label, arguing that his predictions are based on historical analysis and the unprecedented power of central banks to create money out of thin air.
Dent advises investors to seek safety in the most secure bonds, emphasizing the United States’ position as the world’s largest economy and its ability to endure the anticipated downturn. He expects the upcoming crash to be more severe than the one experienced in 2009, as the previous crash was mitigated by stimulus measures. Dent believes this crash will purge excess from the markets, allowing the millennial generation to benefit from a healthier boom in the future.