David Tice, manager of the $897 million Prudent Bear Fund and also known as “Dr. Death,” believes the U.S. economy is on the verge of the most severe recession since World War II, The Australian reports.

Tice points to the slumping housing market, the subprime loan mess and the tightening of credit on Wall Street. As a result, he expects housing prices to fall another 30% by next year, earnings to crumble, GDP growth to stall, bankruptcies to rise and the subprime crisis to affect the entire credit market, including mergers and acquisitions.

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