‘Cracks Everywhere’: Billionaire Warns The US Economy Is On The Verge Of A Massive Blow Up

Chairman and CEO of Starwood Capital warned Thursday that the U. S. economy is about to blow up the housing market already teetering on the edge of a crash.

Billionaire investor, Barry Sternlicht, said in a Thursday interview on CNBC that he believes the U. S. economy will enter into a major recession if the U.S. Federal Reserve continues raising interest rates to combat inflation. “The economy is braking hard,” Sternlicht told the outlet. “If the Fed keeps this up, they are going to have a serious recession and people will lose their jobs.”

Sternlicht warned that more historic Fed rate hikes will cause unnecessary “cracks everywhere” in the economy, including the fragile U. S. housing market, during the fourth quarter of 2022.

“This is the steepest increase in rates in history — especially since Volcker – but the background of the country today is so different than when Paul Volker was chairman,” he said.

“Look at the housing market, [the Fed has] caused a crash of unprecedented proportions,” Sternlicht told CNBC. “500,000 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.”... (Read more)

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