Bhubaneswar: A top US economist has warned of an impending stock market crash that could surpass the severity of the Great Financial Crisis in 2008. In an interview with Fox News Digital, Harry Dent, a Harvard Business School alum, cautioned that the "everything" bubble has yet to burst and could result in a crash larger than the Great Recession.

Dent explained that while the 1925 to 1929 bubble was natural and lacked artificial stimulus, today's situation is unprecedented. He likened the current economic strategy to drinking more to cure a hangover, stating that continuously flooding the economy with extra money might boost it in the long term, but the true impact will be evident when the bubble bursts.

He highlighted that typical bubbles last five to six years, but this one has persisted for 14 years. "You'd have to expect a bigger crash than we got in 2008 to 2009," Dent added.

When this bubble finally bursts, it could lead to a market downturn more severe than the 2007-2008 financial crisis. Dent predicted that the S&P could fall by 86% from its peak, and the Nasdaq by 92%. He mentioned Nvidia, a high-performing stock, could drop by 98%, signaling a multi-trillion dollar market crash.

Dent expects the fallout to occur early to mid-next year due to the Federal Reserve's rapid monetary policy tightening to control inflation. He also pointed to the housing market as central to this potentially catastrophic bubble.

According to Dent, the US government is primarily responsible for this prolonged bubble. He stated, "The government created this bubble 100%… artificially, injecting a drug to artificially perform stronger. And again, everything from human life to history shows, you don't get something for nothing, and bubbles always burst… it's a much, much higher possibility than anybody gives it."

Notably, Dent has accurately predicted major economic events in the past, such as the Japanese asset price bubble burst in 1989 and the dot-com bubble burst in 2000. His forecasts are based on factors like demographic trends, economic cycles, and market analysis.