Repeat of 2008 Selloff on Horizon: Hedge Fund Director

Cash-strapped Americans in search of liquidity will turn to stocks as a source of funds, triggering another market selloff similar to the 2008 crash, Damon Vickers, managing director of Nine Points Capital Partners told CNBC on Thursday.

"The trend, the trade of declining real estate prices and lack of liquidity that is available for consumers to consume, which is the access to credit, debt, is not present," Vickers said. "The only thing that they have access to, to access credit, to consume and to be addictive consumers, which we are, are their stock portfolios. They can't sell their real estate and they can't tap the equity in their homes."

Vickers called for a realignment of global currencies in order to thwart a growing likelihood of deflation. "We're hearing the deflation sound slipping out of the air of globalized, Western economies," he said.

This comes at a time when WL Ross & Co. made a "brave" investment of some $170 million in Sun Bancorp. .

"I'm surprised he [Wilbur Ross] wasn't loading up on Citicorp - it trades about 500 million shares a day- and he can have all he wants," said Vickers. Financials remain slightly overpriced, Vickers pointed out.

"We've got assets in the economy that haven't really factored in liabilities," he said. "Unless the plunge protection team comes in the next couple of days, the markets are looking very dicey here."

(For a different view of the market, check out this CNBC video: Market Is 'Bottoming Out'—But When's the Bounce?)

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Disclosure information was not available for Damon Vickers or his company.

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