$2B bank CEO is blunt: The recession is here — and might stick around through 2024

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.”