Posted on 01/23/2017 10:42:20 AM PST by Lorianne
Count David Stockman, former director of the Office of Management and Budget under Ronald Reagan, as one of the non-believers in the Trump rally and coming economic boom.
U.S. markets have hit record highs since the election of President Donald Trump, and Wall Street continues to anticipate pro-business policies that will benefit banks and infrastructure.
However, Stockman reiterated his warning on "Fast Money" that a financial meltdown was in the offing. On the eve of Trump's inauguration, the former director of the Office of Management and Budget offered a reality check for investors who thinks the days of Reagan prosperity will return once again.
"The market is pricing the second coming of Ronald Reagan, but the newsflash on the eve of the inauguration is that there's no reincarnation coming," said Stockman, who served as budget director from 1981 to 1985.
"We're at the diametrically opposite position that we were in 1980," he added.
Stockman explained that in the early 80's when Reagan took office, debt was at a $1 trillion which equaled around 30 percent of U.S. GDP. Now, 35 years later, debt is nearing $20 trillion, or what could translate to 105 percent of GDP.
In other words, Reagan had a lot more room to maneuver with respect to the debt, while Trump could find himself hampered by rising debt.
(Excerpt) Read more at cnbc.com ...
(till hell freezes, prolly)
Isn’t stockman the nincompoop who told Reagan trickle down economic policies would never work
Get lost Stockman, we don’t want/need to hear from you.
20 trillion dollars of debt and hundred of trillions unfunded future debt will do that to a nation. None of which is Trumps fault
CNBC, the Lying Leftist Media. They are presumed to be lying and we should assume what they publish is a lie. The presumption can only be rebutted with the outlet providing clear and convincing evidence they are not lying.
Exactly. But he is left with a mess to try to clean up. Even a superhero could not do it IMO but he might make a dent in it.
Another in the increasingly long list of irrelevant “I’m important dammit!” tantrum throwers.
David Stockman, lol.
If Trump can’t handle it, I doubt anybody could.
Trump is the ONLY politician, I’m aware of that was willing to address the offshoring issue with Tariffs. No one else had a plan. Most wanted more so-called free trade.
He’s the only one that focused on jobs.
I think he may be the only one that has recognized the importance of the energy sector to the economy.
I guess the spanking that Reagan gave him finally wore off...To the woodshed with Dave!
Seems to me the stock market saw a very huge correction early on in Reagan’s presidency. What was it, black Thursday or Tuesday or something? And then there was the Reagan Bull Market.
So, whatever happens from here out is Trump’s fault?
Idiots.
Stockman didn’t even like Reagan when he was in office. Not the greatest barometer. Laffer had much to do with both Reagan AND Trump’s economic plans.
But we do have an ace in the hole.
American Energy production.
Yes. And I believe Reagan quietly let Stockman go.
Seems to me Stockman’s been making his fortune predicting fiscal apocalypse for seemingly ever. He wore out the cry of wolf a while back me thinks.
Reagan took Stockman to the woodshed, and yes, ‘woodshed’ is exactly the word that President Reagan used.
Stockman has predicted 27 of the last two market crashes.
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