Wall Street vet and Bitcoin bull Mike Novogratz says the economy is going to ‘collapse’ and we’re heading into a ‘really fast recession’

One of the most dire outlooks yet has been given by a Wall Street veteran, who believes a recession will happen in 2023.

"We are going to go into a really fast recession, and you can see that in a lot of ways," he said.

The Federal Reserve raised rates by 0.75 percentage points just before the interview was given by the chief executive of the company. The rate hike came five days after the surprise consumer price increase.

The housing market is cooling down after a two-year hot streak, and inventories are rising as a sign of a recession looming.

He said that the Fed is stuck in a position where it has to raise interest rates until inflation rolls over.

The central bank was going to lift rates by 75 points and the market was going to rally on the news, according to a prediction by the interviewer. The S&P 500 advanced 1.5% after Powell announced the rate hike, while the DJIA rose 1%.

There will be a stock sell-off in the next few days, which was predicted by the man. There is an event happening at 8 a.m. The S&P 500 was trading 2.5% lower, wiping out yesterday's gains and plunging the benchmark further into a bear market.

The people are hiking into a bubble.

Recession looms

When the NBER finds a significant decline in economic activity that lasts over an extended period of time, the U.S will be in a recession.

According to a survey of 49 U.S. macroeconomics experts conducted by the Financial Times and the University of Chicago, this is likely to happen in 2023.

More than 70% of the economists think the NBER will make a call at some point in the future, with another 30% expecting a recession to start in the first two quarters of the following year.

Runaway inflation is being driven up further by the soaring prices of food and fuel brought on by Russia's War on Ukraine and the Fed is powerless to stop it.

In his announcement of Wednesday's rate hike, Powell signaled another large rate hike coming at the July FOMC meeting, with the Fed expecting weaker economic growth and higher unemployment

Crypto crash

The 1998 collapse of Long-Term Capital Management fund and the current bloodbath in the cript market are both similar to the current recession.

Long Term Capital Management lost $4.7 billion in less than four months after it was exposed to the 1997 Asian financial crisis and the 1998 Russian financial crisis. The fall of the company led to a $3.6 billion rescue.

It was close to falling below $20,000. The crypto king has lost more than 30% of its value this month and was down another 9% on Wednesday. It went up to $22,900, but has since fallen back to $21,015.