Skip to comments.Former Reagan Budget Director Despairs: ‘I Wouldn’t Touch the Stock Market With a 100-Foot Pole’
Posted on 03/03/2012 2:52:46 PM PST by Lazlo in PA
He was an architect of one of the biggest tax cuts in U.S. history. He spent much of his career after politics using borrowed money to take over companies. He targeted the riskiest ones that most investors shunned car-parts makers, textile mills.
That is one image of David Stockman, the former White House budget director who, after resigning in protest over deficit spending, made a fortune in corporate buyouts.
Former Reagan Budget Director Despairs: I Wouldnt Touch the Stock Market With a 100 Foot Pole
But spend time with him and you discover this former wunderkind of the Reagan revolution is something else a scared investor who doesnt own a single stock for fear of another financial crisis.
Stockman suggests youd be crazy to hold anything but cash now, and maybe a few bars of gold. He thinks the Federal Reserves efforts to ease the pain from the collapse of our national leveraged buyout his term for decades of reckless, debt-fueled spending by government, citizens, and companies is pumping stock and bond markets to dangerous heights.
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I don't disagree, but there is an awful lot of cash on the sidelines waiting to be invested somewhere. If Obama loses and the economy starts to turn around, that cash will find its way into the market. That has to help push stock prices up.
Nudge Nudge Nudge....
“Douglass Gordon Gekko Is FBIs Latest Insider-Trading Crusader”
Wasn’t he the one who coined the phrase “voodoo economics” in response to Reagan’s “trickle down”?
When the dollar is no longer the reserve currency that cash will become firewood.
I thought it was H. W.
Not sure. He may have gotten it from Stockman. Stockman was definitely off the reservation as I recall...my recollections being, admittedly, suspect.
Before Reagan's election, supply side policy was considered unconventional by the moderate wing of the Republican Party. While running against Reagan for the Presidential nomination in 1980, George H. W. Bush had derided Reaganomics as "voodoo economics".
I’m not sure he was. I can’t find anywhere he said it. Bush coined the phrase during a debate with Reagan. By all measure, Stockman was a Supply Sider when he was OMB director.
“He was an architect of one of the biggest tax cuts in U.S. history.”
“architect” being the operative word. IIRC he was relatively unknown until “recanted”. Will research it later.
However,I am sequestering all the assets I can until after the election.
That cash was produced by Bernanke’s printing press.
by David Stockman. Says it all right there.
“The day of national reckoning has arrived. We will not have a conventional business recovery now, but rather a long hangover of debt liquidation and downsizing as suggested by last weeks news that the national economy grew at an anemic annual rate of 2.4 percent in the second quarter. Under these circumstances, its a pity that the modern Republican Party offers the American people an irrelevant platform of recycled Keynesianism when the old approach balanced budgets, sound money and financial discipline is needed more than ever.”
So how does he feel Obama nd the Democrats are doing? I think it is the Democrats who are embracing “Keynesianism”
ideas just ask Brney frank
A Republican win will bring out investors, a Democrat win will be economic halt in the preceding year.
The bet is the value of companies you own that don’t go out of business exceed the loss you will take with the ones that do go out of business.
13k should be around 9k except there’s no where else to go, and you get dividends for income.
You will have til into 1st quarter before the stocks value dissipates as the realization that consumers are turning into hoarders.