Market prophet predicts a 30% stock market fall, an impending recession, and the impending burst of the commercial real estate bubble- These are the quotes from a recent interview with Gary Shilling

This week, a renowned market prophet issued dire warnings: stocks could plummet by 30%, the US economy is hurtling toward recession, and the commercial property bubble is ready to pop.

Veteran economist Gary Shilling, who has a reputation for accurately predicting events like the 2008 housing meltdown, also predicted “The Julia La Roche Show” that the Federal Reserve will start lowering interest rates in 2011 to battle inflation.

1. “It’s reasonable to state that the majority of Wall Street forecasts get paid to be optimistic. Even if you’re right, having a bearish outlook can seriously harm your chances of keeping your current employment, as I have personal experience with. To minimize that risk, I founded my own company many years ago.”

2. “From peak to bottom, I’ve thought that equities will drop by roughly 30% to 40%. To reach that 40% overall decline, there would be another drop of almost 30% from this point.”