'Everything Bubble': Wall Street Guru Jim Grant Warns Of Impending Brutal Recession Amid Overpriced Stocks And Crypto Frenzy

Jim Grant, editor of “Grant’s Interest Rate Observer,” has issued a stern warning about the financial instability of the U.S. market due to the decade-long “everything bubble” in asset prices.

Grant delivered these remarks on a recent Rosenberg Research webcast, Business Insider reported. He suggests this has weakened the country’s financial system and is responsible for last year’s market slump and a looming recession.

Grant also pointed out potential problems in various sectors such as regional banking, commercial real estate, private equity, and private credit, which he referred to as “skeletons in the closet.”

“Inflation is a permanent thing. There is no getting back the purchasing power lost to inflation,” Grant stated.

“There ought to be a recession nearer rather than further, because of the preceding everything bubble and all the financial shenanigans that were part and parcel of that.”

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He also expressed concerns about the fragility of the nation’s financial structure due to decade-long cheap money policies.

“The product of artificially low rates was artificial balance sheets. The product of artificial balance sheets is a new macroeconomic fragility,” he said.

In relation to the stock market, he said, “The stock market is not something that strikes me as especially appealing. I don’t see a margin of safety much anywhere in the financial markets.”

He also voiced skepticism about the current high valuation of stocks and cryptocurrencies, while promoting gold as a haven asset.

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