The post Expect a ‘nasty’ economic collapse similar to 2008, warns trading veteran appeared on BitcoinEthereumNews.com.

Trading veteran Todd Horwitz is warning that the United States economy could be heading toward a severe downturn reminiscent of the 2008 financial crisis as economic pressures build beneath seemingly stable financial markets. His concerns come as recent data showed the U.S. economy expanding at a much slower pace than expected, he said in an interview with David Lin published on March 13. Notably, gross domestic product grew at an annualized rate of just 0.7% in the fourth quarter, sharply lower than the earlier estimate of 1.4% and well below market expectations. Despite the weak reading, markets barely reacted. To this end, Horwitz said this reflects how modern markets function, with large institutions closely tracking the indicators behind data such as GDP and jobs figures, meaning much of the information is already priced in before the official release. While markets may appear stable, the trader argued that the broader economic reality is far more troubling, especially for most Americans.  Rising household financial pressure  He said household financial pressure is rising as debt continues to grow, with many consumers increasingly relying on credit and deferred-payment financing to sustain spending. At the same time, mortgage delinquencies remain a concern, and borrowing costs have stayed elevated. Horwitz also pointed to signs of overbuilding in several sectors of the economy, which could exacerbate financial stress if conditions deteriorate. He further warned that the banking system may be vulnerable due to excessive leverage, a dynamic that historically amplifies financial shocks during downturns. “I expect a pretty nasty collapse once again. I expect something similar to 2008. I think the banks are overleveraged. I think the Federal Reserve is worthless. Their rate cut cycle, if you go back and look, they cut rates five times in the last two years,” Horwitz stated.  He also pointed out…

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Filed under: News - @ March 14, 2026 1:19 pm