Harvard Economist Martin Feldstein warns that the next economic downturn could rival the Great Depression and wipe $10 trillion off U.S. household assets.

“We have no ability to turn the economy around,” said Feldstein, the president emeritus of the U.S. National Bureau of Economic Research, told the Daily Telegraph.

“When the next recession comes, it is going to be deeper and last longer than in the past,” he told the Telegraph’s Ambrose Evans-Pritchard. "We don't have any strategy to deal with it."

A spike in 10-year Treasury yields would be likely to trigger a bear market, which could grow into a wider crisis that the world’s major economies lack the fiscal, monetary, and emergency tools to fight, Feldstein warned.

"Fiscal deficits are heading for $1 trillion, and the debt ratio is already twice as high as a decade ago, so there is little room for fiscal expansion," he said, adding, "We have no ability to turn the economy around."

However, not everyone is as pessimistic, especially when it comes to the U.S. economy.

National Economic Council Director Larry Kudlow said the U.S. economy is leading the rest of the world by returning to a basic approach of cutting taxes and burdensome regulation to allow businesses to freely flourish with government oppression.

"The U.S. is the hottest economy in the world today. We're crushing it," Kudlow told the Economic Club of New York. "Capital is flowing here in huge quantities,"
the veteran financial guru and former Ronald Reagan adviser said.

"The single biggest story of this year, 2018, the single biggest news story is not a fictionalized version of what goes on in the White House and all the rest of it. The single biggest story is an economic boom that virtually everybody thought impossible," said Kudlow, who served as the Trump campaign's senior economic adviser.

"I believe the recent successes are not off-off. They will be continued and sustained because of the policies," said Kudlow, citing a laundry list of recent robust economic statistics such as rising consumer and business confidence reports, a solid labor market and increasing wages.

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