The expert who predicted the collapse of Lehman Brothers in 2008 today warned that Credit Suisse could be the next to go under after the failure of two Wall Street banks left the US bond market in ‘serious trouble’.
Robert Kiyosaki, author of Rich Dad Poor Dad, delivered the gloomy prediction as markets crashed following the collapse of Silicon Valley Bank last Friday and Signature Bank on Sunday.
Experts believe that the tremors will not trigger a new global banking crisis like the disastrous one in 2008 – but predict it will cause a new credit crunch, making it harder and more expensive for consumers and businesses to borrow cash as banks try to limits risks.
Speaking on Fox News‘ Cavuto: Coast to Coast, Mr Kiyosaki said: ‘The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse, because the bond market is crashing.’
He made the prediction yesterday, just hours before Credit Suisse itself admitted it has a ‘material weakness’ as the cost of insuring its bonds from defaulting reached the highest level since the bank’s creation in 1856.
Read more: Wall Street expert who foretold the Lehman Brothers collapse in 2008 predicts Credit Suisse to be next major bank failure and warns of ‘serious trouble’ for U.S. bond market after SVB collapse