WTFinance Massive Recession Coming in 2026 with Edward Dowd
Dec 12, 2025
Edward Dowd, founder of Phinance Technologies and former BlackRock portfolio manager, shares his bold economic predictions for 2026. He discusses the prospects of a massive recession, warning of a potential 30-50% market drop and the implications of rising electricity costs. Dowd delves into AI's role in prolonging the economic cycle and the global impact of China’s housing crisis. He emphasizes the importance of preparation, recommending tactical investments in safe havens like gold and cash to weather the upcoming financial storm.
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Recession Signs From AI Bubble And Credit Tightening
- The economy is rolling toward a recession as AI-led growth and COVID stimulus unwind.
- Credit is tightening and consumer indicators like ADP and confidence are weakening.
China Hides Housing Data As Crisis Begins
- China has stopped reporting key housing data as its real estate crisis deepens.
- Dowd's institutional report shows China's acute real estate phase begins and problems intensify in 2026.
Private Credit And AI Spending Extended The Cycle
- Private credit and Ponzi finance have propped up zombie companies and extended the cycle.
- AI spending has driven recent GDP but lacks demonstrable ROI and will likely reprice.
