David Stockman: Brace for Hillary Impeachment, Recession, Market Collapse in 'Nasty' New Year Image: David Stockman: Brace for Hillary Impeachment, Recession, Market Collapse in 'Nasty' New Year
(Getty/Saul Loeb)
By F McGuire | Wednesday, 12 Oct 2016 03:14 PM
Reagan Budget Director David Stockman warns that the nation will plunge into a recession, even though Hillary Clinton will win the presidential election.
While many analysts believe the stock market will rally in the wake of a Clinton victory, the author of "Trumped! A Nation on the Brink of Ruin" believes the economy is doomed regardless of the result.
The former director of the Office of Management and Budget predicts Congress will be "totally dysfunctional" once Clinton is in office.
“Lawmakers may not be able to come together and work out solutions leading to economic growth given how many divisions the election has caused,” CNBC explained.
"I think it's going to be so contentious in the House because [Paul] Ryan has moved to protect his House majority, that it's very likely that investigations will begin immediately," the Newsmax Finance Insider told CNBC. "And within any kind of excuse, they will try to impeach Hillary Clinton barely after she gets in office," he said.
"When the stock market stumbles and the economy begins to actually register negative growth, which I think is coming if not next quarter certainly in the first half of next year, there's going to be nothing below and the market is going to go through a massive contraction," said Stockman. "I think it's going to be a very nasty time in the year ahead," he added.
Aside from the political hijinx, the economy itself is actually staggering more than most financial gurus will publicly admit.
"Growth over the last four quarters has averaged 1.3 percent, that's barely stall speed [and] we have inventories building up," Stockman told CNBC. "If you look at concurrent indicators of the economy such as freight shipments and so forth, they're weak and negative. Capital spending is down double digits and exports are down and so forth," he said.
Stockman isn't alone in his dire predictions of market chaos after the election. But other financial gurus think GOP presidential nominee Donald Trump winning the White House would cause a stock-market collapse.
Billionaire investor Mark Cuban says he has his "Trump hedge on." In a recent interview on Fox Business Network anchor Neil Cavuto's show "Coast to Coast," the "Sharktank" reality TV personality warned: "In the event Donald wins, I have no doubt in my mind the market tanks."
But not all gurus are as pessimistic as Cuban and 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.
Poster Comment:
Cuban should stick with his reality TV garbage and stay out of politics.