"An Even Bigger Crash Than the Great Depression Could Happen"
Last Year Also Predicted a 'Major Crash'... Delayed by One Year

American economist Harry Dent has drawn attention by warning of a stock price crash of AI leader Nvidia.

In an interview with Fox News Digital on the 10th (local time), Dent claimed, "The bubble of everything has not yet burst. A crash greater than the 1929 Great Depression could occur."

He emphasized, "The bubble from 1925 to 1929 was a natural bubble with no artificial stimulus. Now, it is a new situation that has never existed before." He pointed out that the quantitative easing by central banks around the world has inflated the bubble.

Jensen Huang, CEO of NVIDIA
Photo by Yonhap News

As a result, Dent predicted that the upcoming correction could be even more devastating than the 2008 financial crisis triggered by the subprime mortgage crisis. He forecasted, "The S&P 500 index could fall by 86% from its peak, the Nasdaq by 92%, and Nvidia, whose stock price has soared due to the AI boom, could drop by 98%."

Nvidia's stock price has surged about threefold over the past year. As of the closing price on the 11th, its market capitalization was approximately $2.97 trillion (about 4,098 trillion KRW), growing to a level comparable with the largest U.S. big tech companies such as Apple and Microsoft.

He also warned that the U.S. housing market is overheated. He stated, "U.S. housing prices have already risen more than twice their original value," and added, "Historically, people have never owned this many houses, and many have purchased second or third properties for speculative purposes."

Meanwhile, Dent had also asserted last December that there would be a "once-in-a-lifetime crash" this year. However, as the U.S. stock market remained strong this year, he revised the timing of the crash to early to mid-next year. This is why some criticize him for "spreading fear."

In response, Dent said, "I just honestly say what I see, and I won't blame people even if they dislike it," adding, "You can choose to tell the truth or to make people happy."

Dent, an expert in economic forecasting, is also famous for coining the term "Demographic Cliff." The demographic cliff refers to the point when the number of households aged 45 to 49?the age group at which consumer spending peaks?declines. Countries that pass the demographic cliff inevitably suffer economic damage as consumption sharply decreases.

Dent published a book titled 2018: The Demographic Cliff is Coming, which explains his theory in detail. Using population projection data from the OECD, he concluded that in Korea, consumption peaks at age 47, and warned that "from 2018, when this group begins to decline, the Korean economy will enter the vicinity of the demographic cliff."