icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
19 Mar, 2020 11:22

Current economic disaster is like three neutron bombs dropped on us, market analyst tells Boom Bust

Current economic disaster is like three neutron bombs dropped on us, market analyst tells Boom Bust

The US Federal Reserve has been attempting to stop investor panic with its emergency actions, but those moves are like firing “a water gun” when we need “a bazooka,” Tobin Smith, CEO of Transformity Research, believes.

Speaking to RT’s Boom Bust, the analyst said that the real problem is in the US debt market, as there is four times as much debt than there was in 2008-2009.

“This is as a financial disaster, as a health disaster as an economic disaster – is like we got three neutron bombs dropped on us,” Smith warned. “First we obviously have the coronavirus and the pandemic, then we’ve got the oil pandemic... and then the third bomb is the government sitting around doing sort of half measures when we’ve essentially had a virtual economic attack.”

Those factors have equal ripple effects across all the financial system and have already plunged the country into a recession, he noted, adding that the S&P Index can drop to 1,600 points. And now Washington needs to deliver another “neutron bomb that offsets the neutron bomb that had been exploded into our system,” according to Smith.

For more stories on economy & finance visit RT's business section

Podcasts
0:00
26:13
0:00
24:57