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 ...
If I had $1.00 for every gloom and doom prediction in my lifetime...
Another day, another economic advisor trying to make a name for himself predicts something. They miss 4,999 times, but when they once hit, and they always do if they’re predicting on a daily basis, the 4,999 are forgotten.
All you read is, “..., who accurately predicted the 2008/09 crash.” Yep, 5,000 times, and it finally happened.
So you just posted a reply to whine?
Piss off.
This is old, just another example of how wrong this idiot is!
David Stockman’s Just Wrong, So Buy Stocks
By MIKE NORMAN Follow | AUG 07, 2015 | 10:31 AM EDT
“I think it’s pretty obvious the top is in.” So said David Stockman yesterday in an appearance on CNBC.
I am now more bullish than ever.
No, seriously, who listens to David Stockman anymore? Stockman, of course, was Ronald Reagan’s budget director until he was summarily fired for publically worrying about deficits. (Republicans, you see, are not really concerned with deficits.)
For a long time, Stockman went away and we didn’t hear from him. However, about four years ago he turned up again and started hitting all the media outlets, talking about the coming end of the world or, I guess you can say, end of America and its economy.
Stockman has been wrong about everything. He’s been wrong about interest rates and wrong about debt and wrong about so-called “money printing” and inflation and market crashes, and just wrong.
http://realmoney.thestreet.com/articles/08/07/2015/david-stockmans-just-wrong-so-buy-stocks
> “Earnings for Q4 2016 are up significantly.”
Earnings for who? Not braodly that’s for sure.
PE ratios are so far out of whack that nothing short of a major devaluation will bring them into acceptable ranges.
Plenty of analyses over the last few years have revealed that the components of indexes have been rigged to create an illusion of market attractiveness. When the money is traced, it’s not the retail investor. It’s free money sloshed around those components.
The market is no place to be right now.
Stockman stuck his head up and saw his shadow—again.
Obama just kicked the can down the road after the 2008 financial crisis. Increasing the money supply and lowering interest rates for so long only helped the banks and stock market. Stockman is just pointing out that Trump inherited a mess.
Shall I save this till March 16? What will he have to say when this doesn’t happen?
I love your optimism and pray that you’re right. Sometimes I get so disillusioned when I read stuff and hear negatives from our own family. I just cannot understand it.
The market rally will continue until the central bank decides it will stop. Those raiding your pension plans will be well clear before any collapse is allowed.
He has a good chance to be right in my opinion.
Fed has spent years pumping money into creating an artificial stock market. Trump’s surge is real but it’s on top of 8 fake years.
Unemployment has been a lie for years. It is the other prong the Fed was supposed to be watching.
Finally, the Fed has totally fabricated interest rates in terms of past methods.
We’ve flirted with 2 consecutive negative GDP quarters for a couple years, staved off only by fake numbers.
A recession is one way to take Trump down, so count on the Fed to push that direction.
Trump needs those tax cuts yesterday and the GOP isn’t delivering. They, too, want to take him down.
I hate to say it but his best chance is a war or the discovery of a new gold field.
Trump hates war, so recession is very likely.
And I’m predicting it will be dark tonight with a chance if daylight tomorrow morning.
But Obola & Pals *have* left us in a condition,financially,where we're almost completely f***ed! Just think of 2008.The ticking time bomb first set by the Rats in the 70's and 90's (remember Reno's warning to mortgage lenders not to dare deny loans to applicants "of color"?).Well,now it's $50 trillion later,national debt-wise.
I'm no expert on such matters but Stockman's basic premise...."Democrats have put us in a truly desperate situation"...seems very plausible.
Good post.
“Cut, baby, cut. Drill, baby, drill.”
Any ship can be turned around, and those are powerful thrusters.
Stockman seems fixated on the Government, rather than the real economy.
If taxes get cut, that is more profit, justifying a higher stock price. The market has priced in about 10%.
They are betting with their own money.
Will the giant fiscal bloodbath be like the day the market fell over 700 points in doe day when Obama was in office?.
“He has been speaking like this for over 2 years, Schiff (whom I love) has been talking like that for 15 years..?”
I agree with them. This economy has been a facade since 1992. I hate to be a gloom and doomer, but there is a snowball’s chance in hell that we can continue on the fiscal irresponsibility path we have been on.
I’ve expected the crash for many years and have been very thankful that it has been parlayed, even though doing so has set us up for an even bigger fall.
EXACTLY.
What makes you think McConnell will have 50 votes to raise the debt ceiling, filibuster or no?
And we all know what the chances of Trump saying "no" is, right?
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