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 ...
In Stockman’s defense, Candidate Trump did say on several occasions that the equity markets are in a bubble.
Yes, he said that. Trump knows the hazards we’re facing.
This is the best prediction I’ve seen yet. I guess you could apply it to the weather too.
A country could save a lot of money by returning the health insurance business to the insurance companies.
Especially Stockman.
I'll wager Trump will continue to grow the debt gravy train like every other President.
He was born on a gloomy day, no doubt.
That day be in the Ides of March. Beware, David! BOO!!
Does anyone proofread any more?
Stockman is always a Debbie Downer.
Trump is our only chance to actually get a “no”, and a tough enough negotiator to make real demands, pursuant to our goals, to trade a “yes” IF he concedes at all.
Methinks the debt ceiling issue is the first place he really has Congress by the nuts. The’ll scream bloody murder, go crazy trash-talking him, and will consent to d@mn near anything he asks for.
Where will he come up with the half-trillion dollars in cuts that would make the borrowing cap increase unnecessary?
bump.
Okay but my calls on DJX (dow jones index) are up about 45% since I bought then on Feb 8th.
“Where will he come up with the half-trillion dollars in cuts that would make the borrowing cap increase unnecessary?”
We’re discussing this on FreeRepublic.com.
If you don’t already know that answer (and ask with the implication “he can’t”), then you haven’t been on this site long enough.
ONLY a half-trillion in cuts? Yeah, we can do that.
Simplest form: invoke the “government shutdown” by not passing the cap increase. Only “essential operations” will continue. There you go: $0.5T in cuts (or more) overnight. For anything “not essential”, subject it to Congressional review as to why it should be funded with what little is available.
How, when Social Security, Medicare, and Medicaid are off the table? Where to the $500 billion in cuts come from?
So what? Unless you sell and take profits, those calls will expire worthless. Your bravado hinges on wishful timing of which you have no control of. Stockman is trying to give people information before they get drowned or taken.
What Stockman is saying is that there will be a rush for the exits come April 15 and that he thinks those who have participated in creating the bubble will start a mad rush for the exits on about March 15.
Why?
Because President Trump is going to nail the slimy scum that has been earning over $200 MILLION per year and paying ZERO TAXES. Just about everyone else will get a needed tax break but there is no way to give a tax break to those who pay zero taxes.
Wall St. Carry Traders and Hedge Funds tied into the big investment bank networks are going to DIE.
And with their last gasping breaths they are going to take the markets down that they have inflated.
The market trajectory since the election has ridden a wave of euphoria linked to a new pro-business tax-cutting President so that the scum can take in the last round of suckers.
Those that are holding large pre-2017 positions are looking for those last suckers to take over the ride before their zero tax nirvana disappears.
Because when the new tax reform appears, it will start from the day it passes and may in certain situations be retroactive.
The balloon is going to deflate. How fast it will deflate is the relevant question.
Possible cuts (some complete, some a small percentage across-the-category):
Corporate welfare: $100B.
Agricultural welfare: $25B.
Sanctuary cities payments: $25B.
Foreign aid: $25B.
“Other” welfare: $100B.
Military (focus on foreign “subsidy”): $100B.
“Other” spending: $125B.
There. A $half-trillion in cuts. Dig around at http://www.usgovernmentspending.com/year2017_0.html to make your own list.
I saw Stockman and thought ‘Steve’ of the
Houston area was back in the news.
Ha! that’s funny
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.