Billionaire Barry Sternlicht Warns of Hard Landing — Says ‘Economy Is Going to Implode’

Billionaire Barry Sternlicht Warns of Hard Landing — Says ‘Economy Is Going to Implode’

The words of billionaire Barry Sternlicht are sure to make more than a few people in the economy nervous: the economy is going to implode!

While the general public has seemingly overlooked the brewing economic storm, the billionaire founder of Starwood Capital Group sounded alarms in a recent CNBC interview about the state of the US economy.

Sternlicht claims the current run of US economic success is unsustainable and a big crash is eminent. According to Sternlicht, the Fed’s policies of gradually raising interest rates and unwinding the balance sheet could possibly lead to the economy imploding. He then added, “you don’t see it yet, but the economy is overheating.”

Where’s The Comfort Zone?

We can already see that global equity markets are becoming increasingly volatile, with the Dow trading at one-month lows before resuming its climb. Barry Sternlicht’s concern is that there’s an artificially created comfort zone, which is raising some false hopes.

He said, “People are not looking at the fact that there’s a fiscal deficit, there’s a balance sheet deficit, there’s a trade deficit. These deficits are obviously widening and something is going to give. When these deficits are not funded by the Fed, there’s risk.”

A Few Things To Consider:

The idea of the economy imploding is obviously something no one wants to hear, but here’s a few things to think about:

• The US needs to be educated about developing a sustainable economic plan.
• Economic policies should be fixed on a global level.
• There needs to be careful planning in order to avoid a quick economic collapse.
• Overall debt needs to be reduced in order to prevent an economic meltdown.

So, while it’s clear Barry Sternlicht is no fan of the current economic situation, he seems to be more optimistic than some people — which is good news. He believes the economy can still get back on track if the right steps are taken, and he’s not the only one. We just have to take our economic fate into our own hands and make something happen.