Posted on 02/26/2017 2:39:01 PM PST by blam
Two weeks after David Stockman warned that "the market is apparently pricing in a huge Trump stimulus. But if you just look at the real world out there, the only thing that's going to happen is a fiscal bloodbath and a White House train wreck like never before in U.S. history" and exclaimed that, when looking at markets, "what's going on today is complete insanity" he is back with another interview, this time with Greg Hunter of USAWatchdog in which he, once again warns, that a giant fiscal bloodbatch is coming soon, and urges listeners to pay especially close attention to the March 15, 2017 debt ceiling deadling, at which point everything could "grind to a halt."
As Greg Hunter writes, former Reagan Administration White House Budget Director David Stockman says financial pain is a mathematical certainty. Stockman explains, “I think we are likely to have more of a fiscal bloodbath rather than fiscal stimulus. Unfortunately for Donald Trump, not only did the public vote the establishment out, they left on his doorstep the inheritance of 30 years of debt build-up and a fiscal policy that’s been really reckless in the extreme. People would like to think he’s the second coming of Ronald Reagan and we are going to have morning in America. Unfortunately, I don’t think it looks that promising because Trump is inheriting a mess that pales into insignificance what we had to deal with in January of 1981 when I joined the Reagan White House as Budget Director.”
So, can the Trump bump in the stock market keep going? Stockman, who wrote a book titled “Trumped” predicting a Trump victory in 2016, says, “I don’t think there is a snowball’s chance in the hot place that’s going to happen. This is delusional.
(snip)
(Excerpt) Read more at zerohedge.com ...
26 ain’t low but it ain’t the 70!!! in 2009.
Good correction would be to lower 20s
They had this establishment joker on Fox Business on election night pushing all this doom and gloom, Trump will be an economic disaster nonsense. It was the one blight in otherwise good coverage.
No doubt he’s a big short-seller and has a bunch to cover by March 15. He and “Dr. Doom” Marc Faber may be selling snow cones on the street by summer.
Probably paid by the buy-gold people....
"The election of Donald Trump brought with it bullish sentiment for Dr. Copper (so called because the price of copper reflects health of the global economy). Many commodities have responded positively since the election in the “Trump rally” – that is, that the new US president will follow through on campaign promises to cut taxes, increase spending, and bolster economic growth. "
Well, we WOULD like Trump to say “no” to raising the debt ceiling, right?
And we all know what the consequences will be, right?
Optimism? Yes..but things have been moving quickly in the market and getting a bit toppy. With prominent, idiot republicans like mcCain, Graham, McConnel and who knows who else along with every single Democrat trying to stall his agenda, this may happen to some extent. Not a full blown crash but they’ll do anything to take the wind out of the sails.
I do wish they’d work for tax reform and regulatory burdens before taking on 0care..but we are in the very early stages of his first term..barely a month..
Stockman bailed out the Dims and Big Gov. when he sold out on the Reagan tax cuts.
The markets go up and down except during the Obama years when the NY Fed opened up free money, yes free money, to investment bankers as part of emergency liquidity programs which became normalized.
Yeah, so free money for Wall St. a-holes to play monopoly with.
Now reality returns and that means the markets will correct. You can bet on it.
The smart ones will be investing in things that are real like manufacturing, power development, agricultural technology. The carry trade will be going bye-bye.
Even Dick Morris is tight re often than Stockman.
Even Dick Morris is tight re often than Stockman.
Did Stockman make any noteworthy recommendations after Nov. 8th?
Me, too!
CA....
Many things are due for a correction.
I was going to say, “didn’t he make the same prediction two years ago?”
Stockman has been wrong on every prediction. If President Trump channels Calvin Coolidge, he will do well.
meh
David has been useless for scores of years
Stockman’s correct about the massive amount of ultimately unsupportable debt supporting the economy - but predicting a date of armaggedon is just wrong.
What will happen is that Congress will just quietly raise the debt ceiling.
I expect they will raise the debt limit to whatever they have to in order not to hamstring the President immediately into his term, so I don’t think March 15 is a key date.
However, there is reason to be dismayed by the giant task ahead of us, especially with the lunatic political hacks of the Mainstream Media lying about anything and everything to hurt Trump and us and any chance of getting the country back on the right track.
Consider that Obama borrowed an insane amount, $10 trillion, and dumped it into the economy and for all that we only got 1% growth. For that amount of borrowing the whole country should have been drinking champagne and eating caviar day and night. It shows how deeply sick our economy is.
And the Fed injected vast floods of money into the economy in order to keep the interest cost on Obama’s mountain of debt down and prop up stock and asset prices.
All of that masked the tremendous loss of wealth flowing out of our country due to (1) the terrible trade deals, (2) the huge burden of importing and supporting a cheap labor population in immigrant families now of over 60 million people, mostly low-skilled, low-education with very low economic added-value that is more than offset by the burden of trying to support this population in a First World country, (3) the huge health care bubble driven by government distortion of the market and the third-party payment phenomenon and (4) the huge higher education bubble driven by government distortion of the market and student loans, among other things.
In order to get to a sound economy lots of pain will have to be felt in many sectors of the economy that today benefit from government distortion, like health care administrators and university administrators and government bureaucrats. The people that would feel this pain are core constituencies of the Democrat Party and are pets of the MSM.
But failing to make the adjustments will just mean that we bleed out as an economy and country and become just another Third World corruptocracy on the garbage heap of countries.
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