Economist who predicted 2007-08 financial crisis claims next crash will be even worse

Mr Dent claimed that the next financial crisis could be the worst of his lifetime and have a major impact on Americans.

12:04, Tue, Jun 11, 2024 | UPDATED: 12:08, Tue, Jun 11, 2024

A expert economist has warned that the US could be on the verge of another financial collapse (Image: Getty)

An expert economist who predicted the 2008 financial crisis and the Japanese economic crash of the early 1990s has said that the USA could face another much bigger financial calamity in the future.

Harry Dent claimed last year that the next financial crash would be the biggest of his lifetime and has subsequently doubled down on this belief in a new interview.

The Mail reported that Mr Dent has claimed that the next financial crash will be triggered by excessive spending and overvalued markets.

Furthermore, he said that this crash would heavily impact the retirement accounts of thousands of Americans and be worse than the recession that struck the USA in 2008.

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Mr Dent warned that the next crisis could be worse than the one seen in 2008 (Image: Getty)

Mr Dent said: “Flooding the economy with extra money forever might actually enhance the overall economy long-term. But we'll only see when we see this bubble burst.

“[This] bubble has been going for 14 years. Instead of most bubbles [going] five to six, it's been stretched higher, longer. So you'd have to expect a bigger crash than we got in 2008 to 2009.”

Mr Dent added that there had not been one bubble in history that had not ended badly and warned that once again people would be hit hard by another real estate crash.

This isn’t the first time there have been warnings about the state of the USA’s economy in 2024. Earlier this year, the CEO of JP Morgan Jamie Dimon warned that the country’s economy was “driving toward a cliff”.

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Mr Dimon made the comment during a panel discussion at the Bipartisan Policy Center earlier this year.

Mr Dimon, who previously sounded admiration for the former president and now convicted felon Donald Trump, said he was concerned about the US economy’s trajectory and compared it to the economic landscape of the early 1980s.

He said: “The debt is like a hockey stick on a chart. When it starts, markets around the world, by the way, because foreigners own $7 trillion of US government debt, there will be a rebellion, and that is the worst possible way to do it.”

His comments were echoed by former Republican Speaker of the House Paul Ryan who said that escalating debt was “the most predictable crisis” the US had ever had.