- David Stockman Warns “Get Out Of The Casino!”
by Tyler Durden, www.zerohedge.com
Forget the “wall of worry,” former Reagan OMB Director David Stockman warns a shocked CNBC anchorette that“the frogs are in the boiling water again on Wall Street…and they don’t have enough sense to get out.” The last 600 days of range-bound trading marks the top he explains adding that “we have reached the cyclical top in both GDP and earnings,” which leaves a market trading at extremely expensive levels – “why would you stay in?” Stockman believes that the world economy is heading into a “deep and lasting deflationary recession.” There is no evidence that America is immune, he adds, warning of the potential for 40% downside and just 2% upside in stocks…
As Stockman recently concluded, the last time the Fed’s money-pumping exercise in bubble finance ran out of steam in 2007, an unmistakable “X” appeared in the labor market data. That is, the index of labor conditions rolled over in January 2007, even as the monthly BLS job count continued to rise, adding nearly 1 million “new jobs” before peaking 12 months later in January 2008.