Famed hedge fund manager Mark Spitznagel is sounding the alarm bells on the future of the economy. Known as the 'Black Swan' investor, Spitznagel is warning of a looming market crash that could echo one of the most catastrophic downturns in financial history.

In a revealing interview with The Wall Street Journal, Spitznagel, founder of Universa Investments, declared, "I’m the crash guy — I remain the crash guy." His track record speaks volumes; he famously made a staggering $1 billion in just one day during the 2015 ‘Flash Crash,’ and delivered substantial returns for his clients amidst the economic fallout from Lehman Brothers' collapse in 2008 and the COVID crisis.

Spitznagel paints a grim picture of the current economic landscape, likening it to the bullish early days of 1929, just before the infamous Wall Street crash. He argues that recent federal interventions have merely masked underlying issues, and he warns that the Dow Jones Industrial Average took a grueling 25 years to recover from its previous lows, according to the Federal Reserve.

He likens the U.S. economic situation to managing a forest fire—clearing flames only for more dry tinder to accumulate, suggesting a potential 'firebomb' amid sky-high stock valuations.

Spitznagel believes that cuts in Federal Reserve interest rates might serve as a catalyst for a temporary market surge, even forecasting that the S&P 500 could rapidly hit the 8,000 point mark, offering a 20% increase from its current standing.

"The markets are perverse," he warns. "They exist to screw people." With a history of accurately predicting dire economic events, Spitznagel's recent remarks are not to be taken lightly. He previously hinted at a looming disaster, an omen that proved prescient as the S&P 500 climbed 23% in the meantime.