Posted on 08/07/2017 6:54:05 AM PDT by EdnaMode
David Stockman, who headed the Office of Management and Budget under Ronald Reagan, in a new commentary warns: Ultimately, the hammer of fiscal crisis and a crashing stock market will break any remaining loyalty of the GOP elders as they smell the 2018 elections turning into a replay of the rout of 1974.
And then the Donald will be gone, and well before August 2018, too. I told an audience in Vancouver last Friday that it could happen by February.
The bottom line is that the Swamp is so undrainable that it will end up making mincemeat of Donald Trump....
In essence, the Donald is the ultimate bull in an exceedingly fragile China shop — and an already badly wounded one at that.
So it is no understatement to suggest that the S&P 500 at 2470 and the Dow at 22,000 is about as fragile as the “market” has ever been.
And Amazon, poster boy for Bubble Finance, is trading around 190 times earnings.
Any untoward pinprick could send it into a tailspin — meaning that the coming political bleeding-out of the Donald amounts to a 50,000 pound pin.
It’s the mighty Orange Swan that will lay the casino low like never before. At the moment, I am not as concerned about the economy as Stockman. I see short-term trouble ahead for the stock market but I don't necessarily see the stock market causing another major recession in the near term.
That said, how will the unpredictable Donald Trump deal with a market crash? Will he spook the entire system?
And what about all the generals that surround him?
And if Trump makes it through February, will he make through the Ides of March?
Not even Julius Ceasar could make it through that mark on the calendar with angry senators around him.
>>>The market is crashing?
No...but it probably is going to crash...and crash hard. The GOPe and the dems are going to see to it.
I agree. The GOPe and the dems will do anything and I mean ANYTHING to break the will of the people. If it takes bringing down this country, that’s what they will do. What a shame! They are destroying the foundation that made this country great. The results of their unattended consequences will be grave. Pray they will fail.
LOL! Dreaming bigly.
If we had an Attorney General.
He’s a stopped digital clock blinking “00:00”.
If Prez Trump is removed from office, I believe the USA will have a revolution like this country has never seen before. IMO
I think a good number of GOPe don't care, and would rather see Trump gone and lose the majority than obey the voters and be America first. They are beholden to the interests that have trillions of dollars at stake, and they believe they will be taken care of regardless. That's why Ryan and McConnell were just fine with a Hillary presidency.
there’s no fool like an old fool ...
They do. Until they get it.
He uses no analysis, only bad analogies. Bull in a china shop, etc., etc., is no substitute for substance, of which Stockman has ever had none.
Besides, don’t forget that Reagan would have been gone in six months if Stockman had gotten his way. Only after he was fired did Reagan have magnificent successes. Before that, RWR had this little rat terrier named Stockman nipping around his heels (and leaking to the press) who wanted him to do what every unsuccessful reformer had already tried before.
I’d trade a David Stockman for a Steve Forbes or Lou Dobbs any day.
This site appears to be holding comments for ransom. I’m guessing there are too many pro-Trump comments to publish?
“The stock market is somewhat of a casino”
Back in the 60’s & early 70’s that was the general feeling. A crap shoot. Bell, IBM, some utilities, Airlines, & military contractors moved well, but the majority of indexes idled. Commodities fluctuated mildly. Gold and silver hadn’t climbed through the roof yet.
“David seems to get everything wrong in the recent past.”
He and Billy Kristol need to get a room!
Today’s market is a whole new ballgame from the traditional market
Market used to be where you went IF you could afford to lose money
With companies etc not having pension plans people have no choice but to put the retirement hopes in the market especially since bank interest is so low etc
Not a good thing at all
Sure looks that way. I guess it hasn't occurred to them the first to be taken out on their side will be the swamp creatures then those who support the swampers and so on and so on.
The leftists are doing their best to destroy America. In the end one side or the other will need to leave America whether that's in body bags, boats, or rafts makes no difference. If our side loses it will be me in one of those body bags because I'm not giving up on the American dream for a bunch of insane leftists.
David Stockman: making a career out of being wrong. This guy’s ego is still bruised from the Reagan firing
Well, there may were there may not be a stock market crash. There is always a stock market crash at some point in time so to say that we are headed for a stock market crash is no different than saying the sun will rise tomorrow in the east.
The secret now as it always has been for investors is to diversify broadly across the range of investments from cash to bonds to equities and rebalance as appropriate. This way your losses will be mitigated and the pain will be lessened when the correction arrives.
I have been a serious investor since about 1980. I have always been in a balanced portfolio as described above and while I have never had the pleasure of taking part in the massive gains that those invested in equities have realized, I have also never suffered the setbacks as they have in severe Market downturns. Overall after taxes I have realized since 1981 growth of just under 10%, a figure which I am well satisfied with.
No one should be investing a penny in the stock market if that penny is going to be needed in the next 5 years. Smart investors buy for the long-term and sit tight through the downturns or even buy into them. The biggest problem I have seen is that people get in the Market at the exact wrong time which is to say at the peak and then they get out of the market also at the exact wrong time which is to say the bottom after a sharp downturn. These people should never have invested in the market.
As a side note, I think that Pres. Trump probably underestimated the size of the swamp.
In fact, it’s not up to Trump to clean up corrupt Congress. Patriots have to do that in the 2018 elections, by electing as many Trump-supporting candidates as they can.
In the meanwhile, patriots need to make sure that there are plenty of Trump-supporting candidates on the primary ballots.
...But Trump can’t get the nomination or win the election, so how can he be gone by February...?
With companies etc not having pension plans people have no choice but to put the retirement hopes in the market especially since bank interest is so low etc
*************
Understand that. But most 401k plans allow for some diversification in the asset mix and/or lifetime/target date funds. Spreading risk is a prudent thing to do, especially with the market at all time highs. I’ve been through a number of corrections and recessions. The bottom can fall out quickly.
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