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Coronavirus is the pin that burst U.S. economy's bubble, says analyst who predicted 2008 crash
Nasdaq CEO: The system is resilient
Nasdaq President and CEO Adena Friedman says past crises have prepared markets to operate during coronavirus even with employees working from home.
Jesse Colombo, an economic analyst who predicted the 2008 financial crisis, says the U.S. economy is in worse shape than many people realize, but he doesn't blame the coronavirus pandemic that seemed to cause the Dow Jones Industrial Average to plunge in March.
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"Coronavirus is acting as a red herring," Colombo told FOX Business. "People are thinking things are falling apart because of the coronavirus. It’s just the pin that burst that bubble."
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Colombo coined the term "bubblecovery" to describe the U.S. economy's post-2008 recovery and skyrocketing debt. He has warned about the impending burst of bubbles found worldwide, from tech startups to U.S. shale energy companies, since 2019 and earlier.
"This false recovery … it's built on the backs of bubbles acting as growth engines. It's not legitimate," Colombo said. "Last time it was the housing bubble. Lightning doesn't strike in the same place twice."