"To me the question is how long and how severe this recession will go," Sunwest Chair and CEO Eric Hovde says.
Real estate developer, entrepreneur and philanthropist Eric Hovde, who ran for U.S. Senate as a Republican in Wisconsin in 2012, has a wide view of the national economy as chair and CEO of Sunwest Bank. The Sandy, Utah-based bank, which recently opened an office in Sarasota, part of an aggressive expansion effort in the Sunshine State, had $2.23 billion in assets through March 31.
In late July Hovde, through the bank, released a six-minute video on the potential of a recession, if there already is one and what the ramifications of it will be. Excerpts of the video include:
“To me it’s not really a question of whether the U.S is in a recession or not. To me the question is how long and how severe this recession will go.
Just like we had a positive wealth effect when asset values were rising, now we have a negative wealth effect. So I think that’s going to make this recession far deeper and longer than people anticipate.
Further, I’ve never been a person who believes in transitory inflation. I’m a monetarist. I believe when you increase the monetary supply by a significant level it will lead to inflation and I think it will take longer for inflation to be wrung out of the system. I think inflation will run hot for at least another 18 to 24 months, coming down but far above the 2% level the Fed would like to get to.
I think we’re headed into a global recession, where there are really no bright spots. I think this recession is going to go longer and be more severe and last a minimum of 18 months, and probably more likely 24 to 36 months.”