David Stockman: Recession Is Going to Engulf the Whole World (Video)
Despite mounting data pointing toward a recession right around the corner, many mainstream analysts continue to insist that declining stock markets and other signs of economic turmoil are just a blip on the radar and things will quickly turn around.
David Stockman appeared on CNBC’s Futures Now last Friday and blasted this bullish line of thinking, saying we are heading for a global recession and a huge crash in the financial markets. In the process, he hit those optimistic about the economy square in the jaw:
Frankly I think your traders are smoking something stronger than what I can legally buy here in Colorado.”
Despite Stockman’s insistence that the dynamics are all pointing toward a crash, the show host continued to push the narrative that this is just a small bump in the road and ultimately the market will resume its upward trend.
Highlights from the interview:
“The oil price is heading into the teens, because the world economy is falling apart.”
“We’re done with a 20-year credit bubble. The central banks everywhere are lost, out of dry powder. Look at the data coming in year-to-data, and this is why I think the stock market is going down too…everywhere trade is drying up…and that means there is a recession that’s going to engulf the entire world economy, including the United States.”
“This time we are looking into the jaws of a recession. It will become more and more evident by the week and month, and the boys and girls in the market are going to panic when they face recession and the fed can’t do anything because it’s at the zero-bound already, and its balance sheet is already hideously bloated.”
“If they now try to go the final step and drive [interest rates] negative and then take away the $100 bill, they are asking finally for the people of this country to wake up, get out their pitchforks, get out their torches and come after these people who are totally out of control and are wrecking our financial system.”
“If someone asks me, ‘What should the Fed do?’ – What they should do is have the good graces to resign, because they are lost. None of this is helping the economy…Now were heading back into a recession, and we are going to have a huge crash in the financial markets.”
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