Harry Dent, a well-known American economist, financial bestselling author and founder of HS Dent, recently warned that the U.S. economy is about to go to hell and a huge collapse is coming, at the latest by the end of June this year, U.S. stocks will stage “the worst crash in history,” and this will be the new The “start of a massive recession”.
ThinkAdvisor reported that Dent believes that false revenue, false GDP, false interest rates and ultra-high valuations make the situation increasingly untenable, since 2008, the market bubble is expanding, and the Federal Reserve has been through the printing of money to avoid the outbreak of the next huge crisis.
Dent warned in an interview that the current U.S. stock market is the most risky since 1929, the difference is that the 1929 bubble was not global, and now everything is in a bubble, “we are willing to stimulate 40% of GDP and launch a $1.9 trillion stimulus package, just to prevent a slowdown. This will go down in history as the craziest thing ever, and people will say, ‘What did they suck up?'”
Dent warned, “Including stocks, commodities, real estate, this could be the biggest bubble burst ever. This impending crisis is the beginning of a new massive recession that will be far more severe than 2008 to 2009.”
Dunter expects that this big crash in U.S. stocks will come at the end of June this year, perhaps earlier, “the S&P 500 will fall to 2,100, lower than the low in March 2020, down 47% to 48% from the recent high, although the S&P 500 may rise to 4,000 points first. The coming crisis will be worse than the last 1, as this Time it will plummet from higher levels to lower levels”.
For why this time so bearish U.S. prospects? Dunter explained that the reason why the 2008 recession did not end up becoming a depression was because the degree of monetary deflation was so great that the depression was avoided, but this led to the continuation of the bubble, “they kept printing money and postponing the bubble, and now we have a bigger bubble, and this recession will become the Great Depression that we were about to fall into in that deep recession in 2008 “.
Dent said that after launching so many stimulus packages, if the economy eventually collapses, economists will go from endless optimism to endless pessimism, and they will think the U.S. will be in a decade-plus-long depression, as it was in the 1930s; but he thinks the depression will be over by 2024 at the latest, “by 2023 or 2024 By 2023 or 2024, we will be out of the woods and into what I call the next ‘spring boom’.