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.
Stockman will be saying that next summer, and throughout Trump's first term.
He said the market was going to crash no less than a dozen times in the past 7 years.
His claim to fame.. he was an adviser to President Reagan.
Since that time.. NOT MUCH!
And earth could be hit by a meteorite. It could happen.
We could have a hurricane, it could happen.
Yellowstone may blow, it could happen.
I could die, it could happen.
The article mentions that Stockman worked under Reagan. It does not mention that Stockman left the administration and complained about Reagan’s “supply side economics.” Stockman was wrong then, and I predict that he is wrong again.
He was a footnote in the history of the Reagan administration. Now he sells doom and gloom investing and gold on late-night tv.
My 401k has increased no less that 34k since January.
CW 2.0 looking all but inevitable at this point.
Even if everything he says occurs, he makes the assumption that people will turn toward the establishment. They are already discredited.
They are like small children playing with fire.
An acquaintance started up in March with “punch a Nazi”. He became visibly upset when I pointed out that “Nazis” punch back.
Not just in the recent past. Stockman is ALWAYS wrong.
Statements like this PROVES LIBERALISM is a mental disease.
“Most of half of American voters wholehatedly support it.”
And what will we conservatives do? Just take it as we normally do?
I will predict that President Trump will still be here in February 2018. And February 2019. And February 2020.
[ They are like small children playing with fire.
An acquaintance started up in March with “punch a Nazi”. He became visibly upset when I pointed out that “Nazis” punch back. ]
Should have read back a list of actual NAZI policies and then asked that it is news to you that Trump instituted such things and that they sound more like something president Hillary or Bernie would have been doing...
Their goal is divide the base with plant false stories..next crash the stock market..these people are freaking evil and they will do it because their hatred is deep and vast...hatred is more important than money! Just ask mcdeath..his hatred to create chaos against trump is more important then to prepare his soul for eternity or spend his last months with family..nope the f^*king evil bastard wants to take down trump no matter what..it don’t matter if the asshole has both feet in the grave already!! God have mercy on him cause I won’t!! The evil Bastard wants to take down America along with trump to the grave!!
I think stockman is focused on the crazy stocks and not on the normal. Apple, Google, Facebook, and a few others are irrational and the result of pure auction level bidding to a great percent.
But oil is at record lows, and as the king of commodities, it will keep inflation in check. Almost every other commodity has oil as part of its price structure. Oil is staying low and that should dampen a lot of inflationary pressure.
If that’s the case, then bonds and stocks that are in the normal range of bidding will proceed on a normal path without volatility.
Trump and the republicans will make it to the mid-terms without a stock market crisis. Yellen will actually help by her negatively intended interest rate hikes. They, too, will keep rampant inflation in check.
Oil and the energy sector is the key in my opinion. Keep them low and overall it will be a calm market.
American is NOT a Democracy, it is a REPUBLIC!!!
Stockman looks at our insane government debt, massive Federal Reserve money printing and financing repression, our overvalued markets, and our corrupt politics, and draws what are “logical” conclusions.
His problem is - he keeps picking dates for “logic” to come into play. That doesn’t happen in Washington DC. They can kick the can forever, it seems.
If I remember correctly during the campaign Trump made statements wherein he was not a big fan of the Stock Market
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The stock market is somewhat of a casino. In many respects, its more dangerous than a game of chance because so many things can go wrong with a particular company and/or the market in general. Not everyone has the ability to ride the ups and downs or to avoid buying when things are over priced (which maximizes risk). Its also easy to start seeing yourself as a smart investor when the market is rising. Bottom line: there are lots of pitfalls in the market that can cause significant losses of your capital.
Yes, the market has gone up over time but stock picking is not for everyone. So I could see why Trump may not be a big fan of the market for individual investors. The lure of making money and all they hype surrounding stocks sometimes causes people to overlook the attendant risks.
Stockman’s record of predictions might be one of the few that are as bad as Dick Morris’.
‘He’ll have Sessions down on him............. any day now.’
why, is he smoking marijuana as well...?
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