In 2003, Elizabeth Warren predicted that subprime mortgage lending would lead to a big economic crash. In 2008, it came true. Now a Democratic presidential candidate, Warren is warning that another crippling economic crisis—this time fueled by rising household and corporate debt—could be on the horizon, unless we (she) take(s) swift action. “Warning lights are flashing,” the Massachusetts senator wrote in a Medium post Monday. “Whether it’s this year or next year, the odds of another economic downturn are high—and growing.”
She’s not the first presidential candidate to predict a looming recession, and she won’t be the last. Back in 2016, then-candidate Donald Trump warned of a “very massive recession” that never happened. And Ted Cruzsaid a stock market crash was imminent. Neither of those claims has come true. Economic alarmism from presidential candidates is about as common as it is ignored. But unlike other “predictions” based on nothing other than a dislike for the other party, Warren’s claim that she predicted the Great Recession received a “true” rating from PolitiFact. She’d been speaking about debt, risky mortgage lending practices, and the looming housing and financial crisis for years.