Tags: Trump Administration | Donald Trump | Hillary Clinton | david stockman | hillary clinton | donald trump | president

David Stockman: 'The Nightmare Begins Wednesday Morning'

(Getty/Paul J. Richards)

By    |   Tuesday, 08 Nov 2016 02:06 PM

 

Former Reagan economic adviser David Stockman predicts that America is headed into the economic abyss regardless of whether the new president is Hillary Clinton or Donald Trump.

“I would say the nightmare starts Wednesday morning,” he told Bloomberg TV.

The former Director of the Office of Management and Budget under President Ronald Reagan said he voted for Trump but is prepared for a Clinton victory. “I think Hillary will be a disaster beyond all the uncertainty you would get with Trump,” he said.

“If Hillary wins, the election recount will start the next day. I am not talking about arguing about Nevada. The House will be controlled by Republicans. There will be 10 committees holding investigation with the subpoena power. We haven't even gotten to the beginning of what is coming out of the FBI. And the Justice Department, and the WikiLeaks, and the Clinton Foundation and the rest of it. Government will be frozen for at least a year, if I can say that, and in that year there will be no fiscal hand-off, which is what the markets expect today, and it won't happen,” he said.

“There will not be a debt ceiling increase that we desperately need over the $20 trillion mark in March. There will be a huge political stand-off before. That I think it will spook the markets like never before, they are overvalued and they will crash.”

He also has little faith in today’s economy and the markets themselves. He explained that Monday’s robust stock market rally wasn’t really merited and proves “there are only idiots and robo-machines left” on Wall Street.

“We are on the cusp on a break-down in governance. If Trump happens to win because of a Brexit effect, and it is possible, there will be unmitigated disaster in Washington,” Stockman said.

“Trump has no policy at all. My argument is with the Fed, and the one thing that Trump has said is the Fed has created a massive bubble. It is artificial. It is one big, fat, ugly bubble, and it has got to change. We can't get interest rates at zero for 94 months,” he explained.

 

But not all gurus are as pessimistic as Stockman. 

Wells Capital Management's Jim Paulsen predicts that the stock market will literally end the year with a bang as it charges into 2017. "I think we're going to maybe find out we are finally turning northward on earnings momentum," Paulsen, Wells’ chief investment strategist, told CNBC. 

(Newsmax wire services contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Former Reagan economic adviser David Stockman predicts that America is headed into the economic abyss regardless of whether the new president is Hillary Clinton or Donald Trump.
david stockman, hillary clinton, donald trump, president
419
2016-06-08
Tuesday, 08 Nov 2016 02:06 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved