{"id":1485117,"date":"2022-05-20T07:31:06","date_gmt":"2022-05-20T11:31:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1485117"},"modified":"2022-05-20T07:31:25","modified_gmt":"2022-05-20T11:31:25","slug":"former-paypal-coo-says-u-s-heading-into-very-serious-recession-later-this-year","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/former-paypal-coo-says-u-s-heading-into-very-serious-recession-later-this-year\/","title":{"rendered":"Former PayPal COO Says U.S. Heading into \u201cVery Serious Recession\u201d Later This Year"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fformer-paypal-coo-says-u-s-heading-into-very-serious-recession-later-this-year%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1485117&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Craft Ventures co-founder and general partner David Sacks warns of a recession later this year.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Craft Ventures co-founder and general partner David Sacks warned on Thursday that the U.S. is headed for a &#8220;very serious&#8221; <a href=\"https:\/\/www.foxbusiness.com\/category\/recession\" target=\"_blank\" rel=\"noopener\">recession<\/a> later this year as markets have been experiencing the &#8220;worst downturn since the <a href=\"https:\/\/www.foxbusiness.com\/technology\/brock-pierce-on-bitcoin-dropping-below-32k\" target=\"_blank\" rel=\"noopener\">dot-com crash<\/a>.&#8221;<\/p>\n<p>The\u00a0dot-com bubble\u00a0was a quick rise in U.S. equity valuations mostly due to investments in Internet-based companies in the late 1990s.<\/p>\n<p>&#8220;The reason why sentiment is so\u00a0negative is because the market has\u00a0sort of collectively realized\u00a0that the highs that we saw last\u00a0year were artificial,&#8221; Sacks told &#8220;<a href=\"https:\/\/www.foxbusiness.com\/shows\/mornings-with-maria\" target=\"_blank\" rel=\"noopener\">Mornings with Maria<\/a>&#8221; on Thursday. &#8220;They were the result\u00a0of <a href=\"https:\/\/www.foxbusiness.com\/category\/the-fed\" target=\"_blank\" rel=\"noopener\">the Fed<\/a> and Congress and the administration pumping $10\u00a0trillion of liquidity\u00a0into the marketplace.&#8221;<\/p>\n<p>&#8220;That\u00a0resulted in inflation and now the Fed has\u00a0to raise interest rates,&#8221; he continued.\u00a0<\/p>\n<p>&#8220;And so over the last six months, there has really\u00a0been a collapse in valuation levels as\u00a0people realize that we\u2019re not\u00a0going to be in this low interest rate\u00a0environment forever.&#8221;\u00a0<\/p>\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Citi&#8217;s Institutional Client Group Chairman Leon Kalvaria argues that at the end of the day, a recession comes from the consumer side of the equation.\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>On Tuesday, <a href=\"https:\/\/www.foxbusiness.com\/category\/the-fed\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a>\u00a0Chairman Jerome\u00a0<a href=\"https:\/\/www.foxbusiness.com\/category\/jerome-powell\" target=\"_blank\" rel=\"noopener\">Powell<\/a>\u00a0reiterated his commitment to curbing\u00a0<a href=\"https:\/\/www.foxbusiness.com\/economy\/april-2022-consumer-price-index-inflation\" target=\"_blank\" rel=\"noopener\">the highest inflation in decades<\/a>, indicating the central bank will raise interest rates as high as necessary in order to tame consumer prices.\u00a0<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/economy\/april-2022-consumer-price-index-inflation\" target=\"_blank\" rel=\"noopener\"><strong><u>INFLATION SOARS 8.3% IN APRIL, HOVERING NEAR 40-YEAR HIGH<\/u><\/strong><\/a><\/p>\n<p>Fed policymakers hiked the benchmark federal funds rate by a half point earlier this month, and Powell has all but promised that two, similarly sized increases are on the table at the forthcoming meetings in June and July. He echoed that sentiment on Tuesday as the Fed races to catch up with runaway inflation and bring it back down to the 2% target.<\/p>\n<p>&#8220;You\u2019ve seen over the last six months\u00a0something liking 14% of global\u00a0wealth has been vaporized,&#8221; Sacks noted. &#8220;If you go back to\u00a02008 and the global financial crisis, it was at 18%, so you are almost at a level of\u00a0wealth destruction that we\u00a0haven\u2019t seen since 2008.&#8221;<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2020\/04\/931\/523\/recession-iStock.png?ve=1&#038;tl=1\" alt=\"image\" \/><\/div>\n<div class=\"caption\">\n<p><span>Craft Ventures co-founder and general partner David Sacks says that markets are experiencing the &#8220;worst downturn since the dot-com crash.&#8221;<\/span><span> (iStock)<\/span><\/p>\n<\/div>\n<\/div>\n<p>The previous two recessions were likely caused by what\u2019s known as an &#8220;asset bubble.&#8221; Although neither featured a large increase in price inflation, both featured the rapid growth and subsequent bursting of asset bubbles. The 2001 recession was preceded by the dot-com bubble burst, and the 2007-2009 recession was preceded by the housing bubble.<\/p>\n<p>Sacks provided the insight a day after <a href=\"https:\/\/www.foxbusiness.com\/live-news\/gas-prices-up-4-cents-overnight-oil-higher-stocks-choppy-steve-wynn-sued-by-justice-department\" target=\"_blank\" rel=\"noopener\">U.S. stocks<\/a>\u00a0saw <a href=\"https:\/\/www.foxbusiness.com\/markets\/stocks-5-18-22\" target=\"_blank\" rel=\"noopener\">steep selling<\/a> as more retailers revealed the negative impact of<a href=\"https:\/\/www.foxbusiness.com\/category\/inflation\" target=\"_blank\" rel=\"noopener\">\u00a0inflation\u00a0<\/a>amounting to the worst day for stocks since 2020.<\/p>\n<p>The Dow Jones Industrial Average fell over 1,100 points, or 3.6% on Wednesday.<\/p>\n<table class=\"stock-fundamentals\">\n<thead>\n<tr>\n<th class=\"ticker\">Ticker<\/th>\n<th class=\"security\">Security<\/th>\n<th class=\"last\">Last<\/th>\n<th class=\"change\">Change<\/th>\n<th class=\"percent\">Change %<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td class=\"ticker\"><a href=\"https:\/\/www.foxbusiness.com\/quote?stockTicker=I:DJI\">I:DJI<\/a><\/td>\n<td class=\"security\">DOW JONES AVERAGES<\/td>\n<td class=\"last\">31253.13<\/td>\n<td class=\"change neg\">-236.94<\/td>\n<td class=\"percent neg\">-0.75%<\/td>\n<\/tr>\n<tr>\n<td class=\"ticker\"><a href=\"https:\/\/www.foxbusiness.com\/quote?stockTicker=SP500\">SP500<\/a><\/td>\n<td class=\"security\">S&#038;P 500<\/td>\n<td class=\"last\">3900.79<\/td>\n<td class=\"change neg\">-22.89<\/td>\n<td class=\"percent neg\">-0.58%<\/td>\n<\/tr>\n<tr>\n<td class=\"ticker\"><a href=\"https:\/\/www.foxbusiness.com\/quote?stockTicker=I:COMP\">I:COMP<\/a><\/td>\n<td class=\"security\">NASDAQ COMPOSITE INDEX<\/td>\n<td class=\"last\">11388.495467<\/td>\n<td class=\"change neg\">-29.66<\/td>\n<td class=\"percent neg\">-0.26%<\/td>\n<\/tr>\n<tr><\/tr>\n<\/tbody>\n<\/table>\n<p>Sacks argued that he believes what is currently happening is &#8220;the consumer is being\u00a0impacted&#8221; by the soaring price hikes.<\/p>\n<p>&#8220;Wages\u00a0are not keeping up with\u00a0inflation and so consumers do not feel as\u00a0flush and you are starting to see that in\u00a0quarterly reports,&#8221; he continued.<\/p>\n<p>&#8220;And I think\u00a0this is what\u2019s going to\u00a0precipitate a slowdown, a\u00a0recession in the real economy and I\u00a0think that\u2019s what\u2019s coming next.&#8221;<\/p>\n<p>The Labor Department revealed earlier this month that average hourly earnings\u00a0<a href=\"https:\/\/www.bls.gov\/news.release\/empsit.nr0.htm\" target=\"_blank\" rel=\"noopener\">rose by 5.5% year-over-year in March<\/a>, down slightly from 5.6% the month before. The data comes amid surging\u00a0<a href=\"https:\/\/www.foxbusiness.com\/category\/inflation\" target=\"_blank\" rel=\"noopener\">inflation<\/a>, which\u00a0<a href=\"https:\/\/www.foxbusiness.com\/economy\/april-2022-consumer-price-index-inflation\" target=\"_blank\" rel=\"noopener\">sits near 40-year highs<\/a>.\u00a0<\/p>\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Craft Ventures co-founder and general partner David Sacks tells &#8216;Mornings with Maria&#8217; that markets are experiencing the &#8216;worst downturn since the dot-com crash.&#8217;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Sacks noted that growth stocks, specifically recent listings, including the new IPOs, the SPACs, and &#8220;the sort of small-cap growth stocks&#8221; are down about\u00a080 to 90% over the last six months, &#8220;since inflation became a huge\u00a0problem and the Fed realized it was\u00a0persistent [and] <a href=\"https:\/\/www.foxbusiness.com\/economy\/how-the-fed-missed-inflation\" target=\"_blank\" rel=\"noopener\">not transitory<\/a>.&#8221;\u00a0<\/p>\n<p>&#8220;So there\u2019s been a\u00a0huge crash in these types of growth stocks, again down 80 to 90% and that has cascaded all the\u00a0way down into the venture capital\u00a0markets in\u00a0Silicon Valley,&#8221; he continued.\u00a0<\/p>\n<p>Saks also forecasted what a recession would mean for venture investments, noting that investments will continue during a downturn as innovation never stops.\u00a0<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/apps-products\" target=\"_blank\" rel=\"noopener\"><strong><u>GET FOX BUSINESS ON\u00a0THE GO BY CLICKING HERE<\/u><\/strong><\/a><\/p>\n<p>He did, however, warn that &#8220;it is going to be a very\u00a0difficult time for startups to weather\u00a0because capital\u00a0availability\u00a0is reduced and a lot of\u00a0companies frankly aren\u2019t going\u00a0to make it.&#8221;\u00a0<\/p>\n<p>&#8220;And so I would expect\u00a0there to be some tough times\u00a0for the startup ecosystem over the next couple\u00a0years,&#8221; he continued.\u00a0<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/\" target=\"_blank\" rel=\"noopener\"><strong><u>CLICK HERE TO READ MORE ON FOX BUSINESS<\/u><\/strong><\/a><\/p>\n<p><i>FOX Business\u2019 Suzanne O\u2019Halloran and Megan Henney contributed to this report.\u00a0<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Craft Ventures co-founder and general partner David Sacks warns of a recession later this year. Craft Ventures co-founder and general partner David Sacks warned on Thursday that<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1485117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1485117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1485117"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1485117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1485117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1485117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1485117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}