{"id":258899,"date":"2022-09-21T07:48:46","date_gmt":"2022-09-21T07:48:46","guid":{"rendered":"https:\/\/www.thetruthseeker.co.uk\/?p=258899"},"modified":"2022-09-23T07:08:00","modified_gmt":"2022-09-23T07:08:00","slug":"billionaire-fund-manager-warns-of-major-economic-collapse-says-he-sees-cracks-everywhere-in-bidens-economy","status":"publish","type":"post","link":"https:\/\/www.thetruthseeker.co.uk\/?p=258899","title":{"rendered":"Billionaire fund manager warns of major economic collapse, says he sees \u2018cracks everywhere\u2019 in Biden\u2019s economy"},"content":{"rendered":"

JD Heyes \u2013 Natural News Sept 20, 2022<\/strong><\/h1>\n

The country is not only continuing to suffer economically under President Biden and a Democrat-controlled Congress, but it is now teetering on the verge of collapse, according to a billionaire funds manager who said last week he sees \u201ccracks everywhere.\u201d<\/p>\n

In an interview with CNBC<\/em>\u2019s \u201cSquawk Box\u201d on Thursday, Barry Sternlicht, the chairman and CEO of Starwood Capital, said he believes Americans are facing a major recession if the Federal Reserve proceeds with several more rate hikes as a means of curbing inflation, which is reportedly the central bank\u2019s plan.<\/p>\n

\u201cThe economy is braking hard,\u201d Sternlicht told the financial news outlet, according to the\u00a0Daily Caller<\/a>. \u201cIf the Fed keeps this up, they are going to have a serious recession and people will lose their jobs.\u201d<\/p>\n

He went on to predict that ongoing Fed rate hikes will cause \u201ccracks everywhere\u201d throughout the economy and in particular in the suddenly fragile housing market as prices have begun to drop, finally, after reaching record highs over the past year (meaning they were overvalued, just like before the 2007-08 \u201cGreat Recession\u201d crash).<\/p>\n

\u201cThis is the steepest increase in rates in history \u2014 especially since Volcker \u2013 but the background of the country today is so different than when\u00a0Paul Volker was chairman,\u201d said Sternlicht.<\/p>\n

\u201cLook at the housing market, [the Fed has] caused a crash of unprecedented proportions,\u201d Sternlicht told the financial news outlet<\/a>. \u201c500,000 single family home sells, new sells, is the lowest since 1952. We are going to have a major crash in the housing market, and housing prices are going down. You are seeing housing prices correct.\u201d<\/p>\n

He also said an expected Fed rate hike of .75 percent at the central bank\u2019s next meeting in October will hit middle America the hardest.<\/p>\n

\u201cTake the consumer that you just mentioned, he is paying higher rent. He is actually paying more for food. And he is paying more for gas,\u201d said the CEO and investor. \u201cThey [the Fed] are attacking the economy with a sledgehammer, and they don\u2019t need to.\u201d<\/p>\n

Sternlicht is\u00a0not the only economic analyst who sees a dumpster fire ahead for the U.S. economy and Americans who don\u2019t have mansions on Martha\u2019s Vineyard.<\/p>\n

Other analysts have said that the Fed\u2019s actions are necessary in order to dampen demand for goods and services, which is currently driving record inflation.<\/p>\n

\u201cMy takeaway is that inflation is nowhere near being done, and the Fed has a long way to go. The standard theory since last year has been that the Fed needs to destroy demand. That means putting people out of work. It also means undercutting the housing market. My key assumption is until we see a sustained reversal in home prices, we\u2019re unlikely to see inflation come down significantly,\u201d said Forward Observer\u2019s Mike Shelby in a\u00a0note<\/a>\u00a0to subscribers last week.<\/p>\n

\u201cFed chair Jay Powell is still dealing with the \u2018wealth effect,\u2019 where Americans still feel comfortable enough to go out and spend money,\u201d he added. \u201cI\u2019m not seeing demand destruction yet, and this is Powell\u2019s big problem: as long as Americans still feel wealthy enough to go out and spend money like they have been, we\u2019ll continue to see higher inflation.\u201d<\/p>\n

\u201cI\u2019m expecting home prices in most markets to see a substantial decline. I think recession fears will kick into overdrive as we get closer to 2023. And as we get closer, consumer demand falls, and the Fed will likely curb inflation \u2013 nowhere close to their target rate of 2%, but I do think the Fed will be able to take the edge off and get closer to 5% annual inflation,\u201d Shelby added.<\/p>\n

Get ready for the economic shockwave that is coming<\/a>, thanks to a combination of bad government policy and overspending by Congress.<\/p>\n

Sources include:<\/strong><\/p>\n

ForwardObserver.com<\/a><\/p>\n

DailyCaller.com<\/a><\/p>\n

 <\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

He is not the only economic analyst who sees a dumpster fire ahead for the U.S. economy and Americans who don\u2019t have mansions on Martha\u2019s Vineyard.<\/p>\n","protected":false},"author":39262,"featured_media":197229,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[66],"tags":[],"class_list":["post-258899","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-Economics"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/258899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/users\/39262"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=258899"}],"version-history":[{"count":1,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/258899\/revisions"}],"predecessor-version":[{"id":258900,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/258899\/revisions\/258900"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/media\/197229"}],"wp:attachment":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=258899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=258899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=258899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}