Renowned economist and best-selling author Harry Dent has issued a stark warning: the biggest crash in our lifetime is imminent, striking between now and mid-June. In an interview with David Lin, he stressed: “People are going to know this is not a big correction — it is a major crash, one you have not seen in your lifetime.”
Crash Scale Far Exceeds 2008
Dent argues that this crash is what the 2008-2009 financial crisis should have been. At that time the S&P 500 fell 57%, but central banks stepped in with unprecedented money printing, preventing the cleansing of the greatest debt bubble in history. Now he predicts an 86% decline for the S&P 500 and a 92% plunge for the Nasdaq. For cryptocurrencies, Dent expects Bitcoin to drop 95%-96% from its November 2021 high of $69,000 to about $3,000-$4,000. “It’s exactly what Amazon and the dot-coms did,” he said, drawing a parallel to the bursting of the tech bubble.
Third Wave Underway, Biggest Drop Imminent
Dent noted that after his previous warning, the Nasdaq fell 38% last October. “That’s just the first wave down. There are two more to follow... We have already started the next wave which could take the Nasdaq to 8,000, down a little over 50%.” The third wave is typically the strongest and hardest, and the largest part of that third wave will hit between now and mid-June. “People will know this is not a correction—it is a major crash none of us has ever seen, and even millennials won't see a bigger one,” he opined.
Central Bank Intervention is the Culprit
Explaining why the crash arrives later than previously forecast, Dent blamed central banks for “declaring war on recession.” He criticized: “Never before have central banks declared literal war on recession, saying ‘We will not let the economy fall.’ They printed money at unprecedented rates to prevent the economy from doing its natural cleansing. The economy underneath is really weak, burdened by a lot of bad debt and zombie companies. Central banks declared war on the free market—that’s the problem.” He argues that after overstimulating the economy, the Fed now has to tighten aggressively. “They have pushed up interest rates and tightened more than at any time since the early 80s, but the economy has been weak since 2008 and cannot handle this.”
Bitcoin to Follow Tech Stocks Into the Abyss
Dent predicts Bitcoin’s decline will mirror the Nasdaq collapse of 2000-2002: from $69,000 to $3,000-$4,000. He believes the Fed won’t be able to stop the third wave. “It’s going to creep up on them before they can reverse the tightening.” Ultimately, he forecasts an S&P 500 decline of 86%, reminiscent of the 1929-1932 crash. “This bubble has not been allowed to burst and clear its excesses. We are now entering that inevitable process.” While admitting market timing is notoriously difficult, Dent emphasized: “This is so important that I am timing the market.”