By Craig Wilson
This post Trump’s Now ‘Blowing Kisses to Janet Yellen’ appeared first on Daily Reckoning.
David Stockman joined Fox Business network to discuss his latest analysis on the economy, the political
Stuart Varney started his segment noting that David Stockman is traditionally bearish toward the market and continues to miss out on the Dow rally as it hit an all-time high. Varney began his entry to the former Reagan economic official by stating that if he had listened to Stockman, he would’ve lost out on significant earnings. Stockman began by reverberating, “If you had taken my advice in March 2000, you would’ve dodged a bullet. You could’ve taken my advice in November and dodged another bullet.”
“We have a Federal Reserve, the U.S central bank, that is responsible for creating repeated bubbles that last seven or eight years. This one we’re in has gotten to the point of absurdity. The market is trading at 24 times reported earnings at the 100-month point in the business cycle. Nobody has outlawed a recession. It is going to happen. The market will crash.”
When asked how he can continue to make such remarks when there is a cycle of recession Stockman remained level. He noted, “when the pullbacks come they remain at 20, 30 or 40%.”
Varney, in either negligent or confused tone, then asked what the point of warning of such a threat was if he could not get a specific time period. Stockman remained focused noting, “I cannot predict what the Federal Reserve is going to do. I cannot predict a black swan. I can predict that there’s an orange haired swan heading right the financial system right now. Washington is going to be in chaos within two or three months.”
Stockman went on to warn that Donald Trump was a threat to the market and a destabilizing factor.
The Fox Business host prompted the former Reagan official on what Trump could do to produce such a devastating crash. Stockman, in clear and sober fashion, leveled, “He’s done nothing right. He’s wasted nine months. The top one, two and even three things wrong and hurting America today falls to the Federal Reserve. He was blowing kisses to Janet Yellen. She’s a menace. She should’ve been asked to resign in January.”
“Second, he should’ve got the budget under control. He is now going to preside over the biggest increase in the national debt in the history of the United States.”
“Third, he should be trying to bring in the expansionist, imperialist foreign policy. He said he would do it during the campaign. Instead of working with Putin and greater relations, he’s running away. Now he is focused on the North Koreans, the Iranians and everyone else. We don’t need another war – we’re bankrupt.”
After being pushed from Varney, who seemed to be in a perplexed mood by the sober speaking, Stockman looked directly into the camera to urge clear and collected thinking. “Sell the bonds. Sell the stocks. Get out of this …read more
Source:: Daily Reckoning feed
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