Nancy Pelosi thought she could always count on Big Tech.
But she just had a curveball thrown her way.
And Nancy Pelosi is panicking after a Silicon Valley titan said these three words.
Nancy Pelosi is terrified about the upcoming Midterm elections.
She’s clinging to a razor-thin majority with no margin for error.
Since the Midterms are a referendum on Joe Biden and Democrats’ catastrophic failures at running the country, Pelosi knows big trouble is coming.
After Democrats went on a socialist spending spree that would make a drunken sailor blush, the economy has cratered.
With the economic problems adding up, the last major disaster awaiting the economy is a recession.
David Sacks is the founding Chief Operation Officer of the Silicon Valley giant PayPal.
Sacks offered his thoughts on the direction of the economy in an appearance on Fox Business.
“Recent listings like New IPOs, small caps, and growth stocks are down 80%-90% over the last six months. Basically, since inflation became a huge problem,” Sacks stated.
“There’s been a huge crash in these types of growth stocks, again down 80%-90%. And that cascaded down into the venture capital markets in Silicon Valley,” he remarked.
“From where I sit the market is semi-frozen and this is again the worst downturn since the dot-com crash. It looks to me like we’re headed into a very serious recession,” he added.
Host Maria Bartiromo asked him why the sentiment on Wall Street was turning so negative and where he thought the economy was headed.
“The reason why sentiment is so negative is because the market has sort of collectively realized that the highs that we saw last year were artificial,” Sacks said.
“They were the result of the Fed and Congress and the administration pumping $10 trillion of liquidity into the marketplace,” he stated.
“That resulted in inflation, and now the Fed has to raise interest rates,” he continued.
“And so over the last six months, there has really been a collapse in valuation levels as people realize that we’re not going to be in this low interest rate environment forever,” he explained.
“You’ve seen over the last six months something like 14% of global wealth has been vaporized,” Sacks noted.
“If you go back to 2008 and the global financial crisis, it was at 18%, so you are almost at a level of wealth destruction that we haven’t seen since 2008,” he said.
Sacks explained that consumers were being hammered by inflation.
“Wages are not keeping up with inflation, and so consumers do not feel as flush, and you are starting to see that in quarterly reports,” he commented.
“And I think this is what’s going to precipitate a slowdown, a recession in the real economy and I think that’s what’s coming next,” he concluded.
With a recession likely on the way, it could spell doom for Pelosi’s endangered House majority.
Renewed Right will keep you up-to-date on any new developments in this ongoing story.