“You can't just print money and grow an economy past its fundamentals,” the market historian and newsletter writer said. “They just bubbled up financial assets,” he continued, referring to the Federal Reserve.
Dent accused the Fed of artificially shoring up the US economy since the onset of the financial crisis nearly 15 years ago. He asserted the US government's aid packages during the COVID-19 pandemic only exacerbated the problem.
“We had this first crash, a tepid bounce, and now we'll have another one of the same magnitude,” he said, adding that he expected the Nasdaq to tank by over 40% to 7,350 points by the end of this year or early 2023.
“You know what recession is to me? Sleep,” he said, arguing the economy needs to cool down, bad debts have to be restructured, and the worst companies must be weeded out. “I'm happy to see a downturn.”
“This is not going to be a recession,” he clarified. “It's going to be a mini depression that'll take a couple years to work out.”
Leave a Reply