- Harry Dent has said that the worst crash of our lifetimes will occur in 2024, the consequences of which will last for more than a decade
- The crash will be caused by overvalued markets and excessive stimulus spending
- Dent urged Americans to 'get out of the way'
An economist has warned that an 'everything' bubble will burst next year, leading to the 'biggest crash of our lifetimes'.
Harry Dent claims the fallout from the May crash will be 'clear' and set the economy back for more than a decade.
He told Fox Digital: “If I'm right, this will be the biggest crash of our lifetimes, most of which will happen in 2024.
'Since 2009, this has been 100 percent artificial, unprecedented money printing and budget deficits; $27 trillion over 15 years, to be exact. This is off the charts, 100 percent artificial, which means we are in a dangerous state.”
He says the crash will be fueled by overvalued markets and excessive stimulus spending, which he says will cause a much worse recession than other economists have predicted.
The worst crash in many people's lives would mean it would have to surpass the hardships felt after the Great Recession of 2008 – 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 isn't all bad: 'I'm the guy who prays for a crash when everyone else doesn't. We need to get back to normal and we need to send a message to the central banks.
“This should be a lesson that I don't think we'll ever repeat again. I don't think we'll ever see a bubble again.'
He added: “If this bubble bursts and the price of everything, especially housing, comes back down to reality, just imagine: you can't just buy the house you want at half off… you can also buy a house twice as nice. here for the same mortgage you would get before. What kind of Christmas present is that?'
Market bubbles are characterized by a rapid rise in stock prices followed by a sharp decline. Dent says the sky-high prices will plummet next year.
Dent predicts that the current bubble burst will be similar to the Great Depression of the 1920s.
He said: 'The Roaring 20s bubble was not an all-bubble.
“This crash will not be a correction. It will be more at the level of '29 to '32. And anyone who had experienced that would have shot their stockbroker.”
Dent claims the crash will be as bad as the Great Depression
He added: “This is the one time I tell you, don't listen to your financial advisor. The intention is not for things to return to normal in a few years. We may never see these levels again.”
Dent has encouraged Americans to “stay out of the way” of the crash, warning that while they might miss out on “a little bit more profit” by selling now, they could also “save huge losses.”
He said that “in a year or a year and a half, people will be able to reinvest at incredibly low prices and increase your profits incomparably.”
He said, 'We're still here. We're still near the highs, and that shouldn't have happened. So you've been given a gift… you've been given this rebound where you get a second chance to get to a place where you could have done it before.”
People will be “most affected” by the property crash, which he says will see house prices fall to 2012 prices.
He said: 'That's a 50% crash for the average home, which fell 34% in the last crash, more than during the Great Depression, more than at any time in history. That's what's going to hurt people the most.”
The Dow Jones closed at 37,385 on Friday due to holidays. That is an increase compared to the 33,203 on December 26 last year.