Market Expert Who Predicted Subprime Crisis Warns of Impending Stock Market Crash
Larry McDonald, the founder of The Bear Traps Report and a former Lehman Brothers executive, is warning that a stock market crash is imminent. He has developed 21 Lehman systemic risk indicators, which are all flashing warning signs. McDonald believes investors are ignoring the risk of a "rolling credit crisis" and focusing too much on new technologies like AI and robotics. He warns that banks' issues are beginning to spread to the commercial real estate market and could infect other sectors of the economy as the Fed raises rates to fight inflation. While this is not a Lehman event, a sharp drawdown is on its way, he warns.