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Tuesday, May 09, 2017

Former Reagan Administration Official Is Warning Of A Financial Collapse Some Time ‘Between August And November’

"The S&P 500 is going to drop by hundreds and hundreds of points sometime over the next few months as we drift into this unexpected crisis."

If a former Reagan administration official is correct, we are likely to see the next major financial collapse by the end of 2017.

According to Wikipedia, David Stockman “is an author, former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.” He has been frequently interviewed by mainstream news outlets such as CNBC, Bloomberg and PBS, and he is a highly respected voice in the financial community. Like other analysts, Stockman believes that the U.S. economy is in dire shape, and he told Greg Hunter during a recent interviewthat he is convinced that the S&P 500 could soon crash “by 40% or even more”…

The market is pricing itself for perfection for all of eternity. This is crazy. . . . I think the market could easily drop to 1,600 or 1,300. It could drop by 40% or even more once the fantasy ends. When the government shows its true colors, that it’s headed for a fiscal blood bath when this crazy notion that there is going to be some Trump fiscal stimulus is put to rest once and for all. I mean it’s not going to happen. They can’t pass a tax cut that big without a budget resolution that incorporated $10 trillion or $15 trillion in debt over the next decade. It’s just not going to pass Congress. . . . I think this is the greatest sucker’s rally we have ever seen.”

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6 comments:

Anonymous said...

David Stockman has been scaring everybody with this same crap since about 1996. He was wrong then, he was wrong in 2006, he was wrong in 2016 and, chances are, he is wrong now.

Anonymous said...


Old David never was the sharpest tack in the box.

Anonymous said...

He might be correct. Work for the state. Rumors are going around that they are asking for volunteers to be laid off. We are short handed now. Doesn't look good!

Anonymous said...

Lets everyone make a prediction and call it "the prediction forum".

Anonymous said...

So what should we do with our 401k

Anonymous said...

If I say it's gonna rain long enough I'll eventually be right.