Famed Billionaire Investor’s Dire Forecast of the US Economy

Omega Family Office CEO Leon Cooperman warns that the U.S. is heading towards a financial crisis, arguing that "nobody" knows when it will hit.

Cooperman’s stark warning about the state of the U.S. economy comes after assessing the country’s "massive debt" that is "out of control," pointing the finger at both Republicans and Democrats for what’s currently taking place in the system.

"We have a government system of leadership at a crisis," he told FOX Business’ Liz Claman during his appearance on "The Claman Countdown" on Wednesday.

"We’re living too comfortably with our policies now. When we get into a crisis environment, we’ll get cooperation," Cooperman said.

The Omega Family Office chairman admitted that the impending crisis "influences" his thinking, revealing that he’s staying away from "overvalued" U.S. government bonds. He went on to add that the stock market has been "extraordinarily bifurcated."

Despite the current standing of the economy, the Federal Reserve signaled that interest rate cuts could be possible in 2024. 

"I think those who are looking for six rate cuts are smoking some substance," Cooperman expressed, arguing that we would be "lucky" to see three reductions.

"I am of the view that interest rates in the 10-year sector are not high enough. And everything I look at, whether it's the speculative nature of the stock market, the level of the market itself, you know, and the real return would suggest to me that rates aren't really that high. That's a real conundrum for the market," he explained.

Cooperman argues that the market has experienced a bear market.  

He shared that he’s looking for "things that went down a lot, where we have cheap stocks, where we have corporate repurchase programs to back up the cheapness of the stock and where they're paying me to wait."

"I think the stock market is going nowhere from this level for a long time," Cooperman stressed. 

This article originally appeared on Fox Business