veteran investor and bitcoin bull michael novogratz doesn’t have a rosy outlook on the economy which he described as headed for a substantial downturn with the likelihood of a “fast recession” on the horizon “the economy is going to collapse” novogratz told marketwatch “we are going to go into a really fast recession and you can see that in lots of ways” he said in a wednesday interview before the federal reserve decided to undertake its biggest interestrate hike in nearly three decades “housing is starting to roll over” he said “inventories have exploded” “there are layoffs in multiple industries and the fed is stuck” he said with a position of having to “hike interest rates until inflation rolls over” centralbank policy makers agreed to deliver an unusual 075percentagepoint rate increase concluding a closely watched twoday policy meeting with a move that would push the fed’s benchmark federalfunds rate rising to a range between 15 and 175 as it steps up the effort to quell an inflation rate that is hovering around a 40year high it was the largest increase in the central bank’s policy rate since november 1994 before the fed announced its decision novogratz speculated accurately it turned out that the central bank would lift interest rates by 75 basis points and that the market would rally on that news he also predicted that stocks will sell off in the coming days “they are hiking into the popping of a bubble” novogratz said referencing the soaring price tags on luxury swiss watches and other assets so far the noted investor’s prediction has played out with the dow jones industrial average djia rising more than 300 points or 1 after briefly running its gain to 600 points after the fed meeting broke up and a news conference hosted by chairman jerome powell got under way the sp 500 spx advanced nearly 55 points or 25 the nasdaq comp bested both with its gain of 25 on tuesday novogratz chief executive of crypto merchant bank galaxy digital brphf  drew parallels between the 1998 collapse of highly leveraged ltcm fund and the current implosion playing out in assets such as bitcoin btcusd and ether ethusd on the ethereum blockchain the tumble of long term capital management sent shock waves through global financial markets and ultimately required a multibilliondollar bailout by wall street banks