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Economist Harry Dent predicts a stock market crash worse than the 2008 crisis: the ‘bubble of all bubbles’
In an updated interview with Fox News Digital, economist and financial author Harry Dent detailed the “bubble of all bubbles” expected to hit markets in 2025.
Harry Dent, the outspoken financial author and economist, is not reversing course from his bold “crisis of a lifetime” declaration last December.
Speaking in an updated interview with Fox News Digital, Dent warned that the “everything” bubble it hasn’t burst yet, and it could be a bigger crash than the Great Recession.
“From 1925 to ’29, it was a natural bubble. There was no stimulus behind it, artificial stimulus itself. So this is new. It never happened,” Dent said 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 could actually improve the global economy in the long run. But we won’t see it until we see this bubble burst,” he added. “And again, this bubble has been going on for 14 years. Instead of most bubbles [going] five to six, it was stretched higher, longer. So you would have to expect a bigger drop than we had between 2008 and 2009.”
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As markets approach the halfway point of the year, U.S. stocks ended the month of May with gains while the tech-heavy Nasdaq stole the show, finishing up 6.9%. The S&P 500 rose 4.8% and the Dow Jones rose 2.3%.
Economist Harry Dent has given a detailed update on the “bubble of all bubbles” that has yet to hit the US economy. (Fox News)
Nearly two weeks ago, AI-powered Nvidia announced a 10-for-1 stock split, Driving Stocks Beyond $1,000 three days later, setting an all-time high.
“I think we will see the S&P fall 86% from the top, and the Nasdaq 92%. A heroic stock like Nvidia, as good as it is, and it’s a great company, [goes] drop of 98%. Boy, this is over,” Dent emphasized.
“We never saw [the] government to 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 hasn’t been a bubble, and this one is much bigger and longer, a great bubble in history. That didn’t end badly, period.”
Author and financial analyst Harry Dent explains why he is predicting that a “very strong and sudden tightening” of markets has not yet completely shocked the economy.
The only change to Dent’s forecast is the timing, noting that market bottoms will likely appear sometime between early and mid-2025.
At the center of the bubble is the real estate market. Dent previously predicted that the housing sector would see 2012 lows this year and said Tuesday that U.S. homes have already increased by double or more than what they will soon be worth.
“Never in history has housing been so widely owned and so many people have had second and sometimes third homes just for speculation,” Dent said, pointing to countries like China and Japan We are seeing an increasing number of residents purchasing empty properties as insurance against a potential market crash.
Dent estimates that the market bottom will hit the US economy in early to mid-2025. | Getty Images
“If you understand what the real cycles are, you don’t have to buy the most expensive house in history right at the top of the market and then mope around for 14 years while it goes through the next recession, like ’29 to ’42 or 1968 to 1982,” expanded the author, “or what would have been, without all this $27 trillion stimulus, from 2008 to 2022.”
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Dent also responded to critics who called his hypotheses “crazy” and accused him of fearmongering.
“I just say what I see and, frankly, I don’t give a shit if people don’t like it, because you [have] I have to choose: are you going to tell the truth or are you going to make people happy?” he reacted. “They call me ‘permanent bear’. This is absolutely, categorically bullshit.”
“Looking at history and looking back, nothing is more obvious,” Dent continued. “Many other bubbles in history simply don’t have the steepness or the magnitude. Why? We never realized the power that central banks can have to simply print money out of thin air.”
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People consider him “radical” because they think that mapping long-term trends is “easier” than in the short term, according to the financial author.
“There really is nowhere to hide except the safest bonds in the world,” Dent said. “We are the biggest economy in the world. We will weather this recession. And if they can print money to create a bubble, they can print money to pay their obligations.”
“In the Great Depression, the great crash came [from] 1929 to 32, and then the follow-up [was] ’38 to ’42. it’s the opposite 1718267408because all the encouragement we had [made] the 2009 accident was minor. The big crash will come at the end”, emphasized Dent. “This will wash all this excess out of the markets, bring the markets back to where they should be, so that millennials can have a boom that is healthier and where they can invest their retirement savings.”
Anticipating the “bubble of all bubbles,” Dent previously advised investors in December to withdraw their capital from the stock market. If he had to bear a new name, he would choose Bitcoin.
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“Because it’s in a leading sector now, at this early stage, that has bubbled up the most. That’s how you know a leading sector; it crashes. Bitcoin is already down over 70%. We haven’t had a recession yet, so that’s how volatile it is this,” he explained. “It’s the one that breaks the most, it’s what I would buy if I could buy something close to the bottom in two or three years.”
But Dent wants investors to remember: “The government created this bubble 100%… totally artificial, injecting a drug to perform artificially stronger. bubbles always burst…it’s a much, much greater possibility than anyone realizes.”