International investor Jim Rogers recently warned that the worst market crash in modern times is poised to hit within the next two years.
“Some stocks in America are turning into a bubble. The bubble’s gonna come. Then it’s going to collapse, and you should be very worried,” Rogers told Business Insider CEO Henry Blodget.
Rogers narrowed the timeframe of his warning to “later this year or next,” Business Insider reported.
“It’s interesting because these things always start where we’re not looking. In 2007, Iceland went broke. People said, ‘Iceland? Is that a country? They have a market?’ And then Ireland went broke. And then Bear Stearns went broke. And Lehman Brothers went broke. They spiral like that. Always happens where we’re not looking,” he said.
Rogers didn’t predict a particular impetus he thinks will spark the crash.
“It could be an American pension plan that goes broke, and many of them are broke, as you know. It could be some country we’re not watching. It could be all sorts of things. It could be war — unlikely to be war, but it’s going to be something,” Rogers said.
“It’s going to be the worst in your lifetime — my lifetime too. Be worried,” he advised savvy investors.
Rogers said central bank officials will try in vain to prevent the inevitable.
“What’s going to happen is they’re going to raise interest rates some more. Then when things start going really bad, people are going to call and say, ‘You must save me. It’s Western civilization. It’s going to collapse.’ And the Fed, who is made up of bureaucrats and politicians, will say, ‘Well, we better do something.’ And they’ll try, but it won’t work. It’ll cause some rallies, but it won’t work this time,” he said.
“You’re going to see governments fail. You’re going to see countries fail, this time around. Iceland failed last time. Other countries fail. You’re going to see more of that,” he said.
“You’re going to see parties disappear. You’re going to see institutions that have been around for a long time -- Lehman Brothers had been around over 150 years. Gone. Not even a memory for most people. You’re going to see a lot more of that next around, whether it’s museums or hospitals or universities or financial firms.”
However, not all economic experts have such a gloomy forecast.
To be sure, chances are remote the U.S. economy will fall into a recession in the next 12 months despite a recent flattening of the U.S. yield curve suggesting growing recession risk, Deutsche Bank's economists said on Monday.
Based on other bond market indicators, they estimated the probability of a U.S. recession from now to June 2018 at less than 10 percent, Reuters reported.
(Newsmax wires services contributed to this report).
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