An analyst who predicted the 2008 global financial crisis has warned that another crash is on the way, and this time it will be much worse.
According to Jesse Colombo, a number of new bubbles in markets around the world are set to burst.
"It’s an illusion of an economic recovery driven by the inflation of economic bubbles. Now I believe that’s beginning to burst," he said.
"I’ve come up for a term for this, it’s called Bubblecovery — a bubble-driven economic recovery," The Independent cited him as saying.
As early as June last year, Colombo said he had identified bubbles in more than 20 markets, among them European real estate, U.S. stocks, U.S. household wealth, corporate debt, leveraged loans, U.S. student loans, U.S. auto loans, tech startups and shale energy.
These bubbles have fuelled much of the global recovery over the past 12 years, he argued. One of the largest is a Chinese credit bubble driven largely by infrastructure spending.
