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 ...
stockman is a permabear..the sky is always falling he has no credibility
Stockman sounds butthurt from irrelevancy.
FU David
It was near the end of Reagan’s term.
Black Monday (1987)
https://en.wikipedia.org/wiki/Black_Monday_(1987)
Stockman has always been a jerk
More about Stockman please. Think Reagan era had its mistakes. Was it Stockman?
Precisely. Dave was a Bushie first,last,and always
Stockman is a loon of sorts. Someday he will be right. To be right all you have to do is spout the same stuff all the time and never back down. Stockman has been spouting ruin for a looooooong time.
He’s always been a squish.
But he never gives up so long as he can sell the news letter!
We’ve put in a lot of checks and balances. I think there was a lot of leveraged buying. There’s a trading halt if the market drops too fast.
Everyone knows there will be a correction at some point, but this egg head is predicting that Trump will fail before he starts.
I never liked this guy.
Exactly.
I knew this traitor would crawl out from under some rock, just didn’t think it would be this soon.
Funny, Obama and Bush spent us into freaking oblivion. Bush was a nightmare, and Obama took it to the next level.
But the minute someone wants to cut taxes and focus on the American people.... holy hell breaks loose.
You didn’t care then, I don’t care now David.
Quite the opposite. Stockman was one of the architects of supply side economics.
Starting 2 months ago with companies pledging jobs and growth in America to Friday where the inauguration was 20% under budget and the money was immediately returned to the Treasury, Trump is on his way. No time or money wasted.
None of this will be reported by the MSM. But seeing as how they are now irrelevant, it doesn’t matter.
No, Stockman was the nincompoop who said that you’d need to cut spending at some point if you wanted to balance the budget.
Trump knows all this. He’s got a lot of experience with massive debt and interest. He also knows the only way out is massive growth or default. He’s decided to cut reg and grow our way out. We are going to be hit with a Federal Reserve induced crisis shortly.
Stockman thinks like a beancounter.
Yes, good recall. He is a Fake conservative.
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