A long-time bear who called the 2000 and 2007 crashes slammed the Fed and said stocks are headed for a 70% drop. Here are the 7 best quotes.

• John Hussman, who correctly predicted the 2000 and 2008 market crashes, warned the stock market is headed for another plunge.
• The president of the Hussman Investment Trust blamed the Federal Reserve for fueling a massive speculative bubble.
• Here are the seven best quotes from his latest note.

John Hussman, who correctly called the stock market crashes in 2000 and 2008, said things are worse now than in previous moments of speculative excess.

The president of Hussman Investment Trust blames the Federal Reserve for acting haphazardly in its monetary policy decisions, which pumped liquidity into the US economy and created a bubble.

Now, high valuations have set the market up for dismal returns over the next decade, said Hussman, warning that a return to their regular trend levels would mean the S&P 500 has to tumble 70%.

Here are his nine best quotes from his latest note.

1. "We enter 2022 amid the most extreme financial bubble in U.S. history."

2. "The single difference between the most recent market cycle and other cycles across history is that in every other cycle, speculation always had a well-defined limit."

3. "[In] a wildly overvalued market, investors should expect not only poor returns but also higher prospective risk."

4. "I've never seen such conviction among speculators that the good times will never end, or such faith that the Federal Reserve can make it so. I'm quite certain that this is a delusion, but I am less certain about how long that delusion can persist."

5. "Until the catastrophic consequences of Fed-induced speculation become unavoidable, the reality is that all we can do is deal with it."

6. "The real problem for the Fed is that it has completely abandoned any semblance to a systematic policy framework, in apparent preference for a purely discretionary one."

7. "Put simply, by relentlessly depriving investors of risk-free return, the Federal Reserve has spawned an all-asset speculative bubble that we estimate will provide investors little but return-free risk."