In an interview with the David Lin Report last week, Harry Dent, the best-selling author and economist, predicts that by mid-June, the US will see a major financial crash set off by the current stock market bubble bursting, and causing a financial meltdown.

According to Dent, the Federal Reserve’s past loose monetary policy has caused the stock market bubble by artificially inflating stock prices. He predicts when the crash occurs, the S&P 500 will collapse by as much as 86% “in this crash” and the Nasdaq will plunge 92%.

He warned the crypto market will enter a tailspin right alongside the stock market with Bitcoin falling 95-96% from its November 2021 high. He said, “Bitcoin will fall from $69,000 to about three to four thousand. It’s exactly what Amazon and the dot-coms did.”

Dent says he feels pessimistic because he sees overlapping crises. First there is the lingering damage the pandemic did to the global economy, slowing demand and reducing consumer spending. Then supply chain disruptions triggered unprecedented inflation in wealthy countries, which has led central banks to tighten monetary policy, further slowing the economies of the world and threatening to tip the world into a recession. Additionally, the pandemic after-effects highlighted the global interlinkages of the world economies, and made him realize, “this is not a big correction — it is a major crash, one that you have not seen … in your lifetime, and the one that even the millennials will not see a bigger crash than this.”

He went on to say that despite the “declared war on recession” by the central banks, “we keep falling back into the recession” because the underlying economic foundation is “really weak and really needs to get rid of a lot of really bad debt and zombie companies and the central banks won’t let the economy do its thing.”

Dent warned there will be a third wave of this crisis, saying “it’s going to creep up” on the Federal Reserve “before they can reverse the tightening.”

Dent concluded, “We have not cleaned up the massive debts and overvaluations of the biggest financial assets bubble in everything. We have never had a financial asset bubble in everything like this. This bubble has not been allowed to burst and clear out its excesses which we need to do. And I think we are into that process now.”

He said he expects “a crash more like 1929 to 1932” referring to the Great Depression, emphasizing it is his “best forecast at this time.”