Posted on 09/30/2017 4:13:19 PM PDT by SkyPilot
David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off.
Stockman, the Reagan administration's director of the Office of Management and Budget, isn't stepping away from his thesis that the 8½-year-old rally is in serious danger.
"There is a correction every seven to eight years, and they tend to be anywhere from 40 to 70 percent," Stockman said recently on CNBC's "Futures Now." "If you have to work for a living, get out of the casino because it's a dangerous place."
He's made similar calls, but they haven't materialized. In June, Stockman told CNBC the S&P 500 could easily fall to 1,600, which at the time represented a 34 percent drop. This week, the index was trading at record levels above 2,500.
Stockman puts a big portion of the blame on the Federal Reserve, and its ultra-loose monetary policy.
"This is a bubble created by the Fed," he said. "We're heading for higher yields. We are heading for a huge reset of pricing in the risk markets that's been based on ultra-cheap yields that the central banks of the world created that are now going to go away because they're telling you that they're done."
(Excerpt) Read more at cnbc.com ...
He's also correct that the Fed created this bubble. For year, they have been fueling the fire. Next month, the Fed is going to be taking draining Billions in cash out of the bond market.
That is going to happen. The Fed said so.
How bad is that going to affect the inflated stock market? Who knows, but it could be a bloodletting.
When has Stockman been right?
Market is high. Either earnings catch up due to economic boom, or market goes down... eventually.
But, Stockman is a stopped clock bear. Fun to read, but no sense of timing.
There’s a 'supervolcano' waiting to erupt beneath a seemingly 'beautiful' market....
Beneath the glow of stock-market records, darkly bearish trends are lurking
Didn’t he say sell everything 11 months ago?
buy gold!
buy gold!
and,
buy gold!
The correction will happen when it happens, like always. It will be a nice opportunity to buy, like always.
The stock market is just a casino.
David Stockman is an idiot. Anyone that says significant tax cuts are a problem is smoking some funny stuff in HIS pipe-dream. Significant tax cuts will launch us into a booming economy.
Who are these idiots who think there’s a problem with you and I keeping more of our hard-earned money? Big-government idiots who cannot see past the D.C. beltway.
The only problem tax cuts create are problems for lovers of big unconstitutional government. Time to begin draining the big unconstitutional government swamp!
The moron will likely repeat it every 11 months while Trump is Pres. Cuz it’s the law of averages the nimrod “thinks”.
Stockman makes his cash on Doomsday “Buy Gold and Silver” sites. He is not to be taken seriously.
CNBC = Counterfeit News & Bull Crap
Don’t believe these Lying Leftist Media outlets that proved themselves during the 2016 campaign to be operatives of the DNC and intentional liars. They are presumed to be lying and we should presume what they publish is a lie. The presumption can only be rebutted with the outlet providing clear and convincing evidence they are not lying.
Fiat money always goes to zero.
Not putting any credence in any particular predictions about any particular market. I just know that since the silver was removed from the coins, and the gold window was closed, the dollar would eventually go to zero.
“If something can’t go on forever, it won’t.”—Herbert Stein
The deal with a major drop in the stock market has several facets. First is how long it takes. It’s a crash only if it happens quickly. If it happens slowly, it is just bleeding off the over pressure.
Next is how the market adjusts to a bear market. It constantly adjusts and adapts, but high stakes gamblers who live and die on dramatic changes, like several prominent billionaires, will likely get really burned with a slow correction.
Right now, hedge funds have been going bust all over the place. The idea is that the fund is divided to do well no matter if the market goes up or down. But they have been destroyed by “continual up” for too long.
The loudest voices on Wall Street are screaming that a correction is imminent, so the best bet for the administration is to start erecting firewalls and buffers to slow things down.
BINGO!
These guys make a lot of money yapping away on TV or writing books and articles suggesting investment strategies they would never try themselves.
I remember the peak of the dotcom frenzy when this doofus predicted the Dow would be at 40,000 in 2016.
He’s been predicting a crash ever since Reagan fired him. If he lives long enough, there is a chance he could be right.
Where should I invest a large sum of $$$$? I was thinking about investing in November.
I don’t think Stockman is right about anything. Markets have corrections and crashes from time to time. If a person can’t handle that then they should not invest in stocks.
But no matter what they should save 10-20% of their paychecks even if they keep it in cash or fixed income investments. Many people use investment risk as an excuse not to save money in the first place.
“Buy American Can and sit on it.”
prediction of doom after...
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Eventually one prediction is made by chance, before there is some doom.
Then they pat themselves on the back and claim they saw what nobody else did.
If I predicted they were wrong, I’d have a far better average than they ever will.
Last September was supposed to be the end of the world according to a sage last year.
Self appointed sages will continue to step forward.
Sometimes they will be right, after being universally wrong for years on end.
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