Mike Novogratz Says, “We’re Heading Into a Really Fast Recession”

Vignesh Karunanidhi
Mike Novogratz Says “We’re Heading Into a Really Fast Recession”
Source: CNBC

Billionaire and Wall Street veteran Mike Novogratz predicts that the economy is going into a really fast recession.

“The economy is going to collapse.” “We are going to go into a really fast recession, and you can see that in lots of ways.”

Novogratz told on Wednesday

Novogratz spoke about this view right before the Fed announced the decision to hike interest rates. The interest hike was the highest the country has ever witnessed since 1994. The housing market, which is finally falling following a two-year hot streak, and rising inventory, according to Novogratz, are symptoms of an approaching recession.

Mike Novogratz highlighted that layoffs are increasing

“There are layoffs in multiple industries, and the Fed is stuck.”The central bank is in a position where it has to “hike interest rates until inflation rolls over.”

As Mike said, layoffs have been on the rise in the crypto industry and others, with Coinbase, Gemini, and BlockFi cutting down on their employees due to the harsh market conditions.

Mike Novogratz predicted before the hike that the fed would hike the rates by 75 points, and the market would rally following the news. He also predicted there would be a major stock sell-off in the coming days, which would plunge the market further down amidst the bear market.

But Mike didn’t give a time frame when the recession was bound to hit. He also highlighted crypto, saying that it reminded him of the Long term capital management crisis in 1998.

The bear market has taken a major toll, with Bitcoin tumbling to almost going below $20,000. The entire crypto market seems to be on a downturn. Michael Saylor, CEO of MicroStrategy, spoke yesterday on CNBC about bitcoin, stating that now is the right time to stack on crypto for the long term.