Tags: david stockman | trump | stock | market | bubble

David Stockman: Trump Touts 'Phony, Fantastic, Stock-Market Bubble'

(Sergdibrova/Dreamstime)

By    |   Wednesday, 31 January 2018 12:53 PM

Economic guru David Stockman warns savvy investors that the seemingly endless bull-run stock-market rally is actually headed on a road to nowhere.

Stockman, the former budget director for President Ronald Reagan, warns some healthy skepticism should be exercised when studying the record highs in the stock market seen since Donald Trump’s presidential-election victory.

It's a "phony, fantastic, stock market bubble" that the president is foolish to embrace, Stockman recently warned Fox Business Network.

“It’s a terrible mistake,” Stockman said on “Cavuto: Coast to Coast” on Tuesday. 

“This is the craziest financial bubble we’ve ever had. This is a suckers’ rally like never before,” said Stockman, who was the Director of the Office of Management and Budget (1981–1985) under Reagan.

“The economy is not taking off despite all the rhetoric from the Republicans in the White House,”  said Stockman, who served as a Republican U.S. Representative from the state of Michigan (1977–1981).

Stockman argued that in the final analysis, Trump’s landmark tax-cut bill wouldn’t bolster economic growth.

“All of the tax cuts are being borrowed, so it’s coming out of one side of the economy and going into another,” Stockman said.

For his part, Trump has taken to Twitter to tout the economy. 

"Our economy is better than it has been in many decades. Businesses are coming back to America like never before. Chrysler, as an example, is leaving Mexico and coming back to the USA. Unemployment is nearing record lows. We are on the right track!" he tweeted Sunday.

Other economic gurus are much more optimistic about the economy's future.

Larry Kudlow, the Reagan administration economist who also advised the Trump campaign, praised President Trump for his speech and other remarks last week in Davos, Switzerland.

The president brought his “America First” message to the annual World Economic Forum meeting, while also showing a willingness to co-operate with other countries. Davos has the reputation for bringing together the business and political elite to promote a globalist agenda that’s contrary to Trump’s campaign message of protecting U.S. workers from the ravages of unfair trade.

“It was very wise to go into the lion’s den,” Kudlow said on cable channel CNBC. “I liked his tone, which was cooperative, and I liked his substance, which was: ‘America’s open for business’.”

(Newsmax wire services contributed to this report).

© 2018 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
David Stockman, the former budget director for President Reagan, warns savvy investors that the seemingly endless bull-run stock-market rally is actually headed on a road to nowhere.
david stockman, trump, stock, market, bubble
435
2018-53-31
Wednesday, 31 January 2018 12:53 PM
Newsmax Media, 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