Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Former Reagan Budget Director Despairs: ‘I Wouldn’t Touch the Stock Market With a 100-Foot Pole’
The Blaze ^ | 03-03-12 | Becket Adams

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 doesn’t own a single stock for fear of another financial crisis.

Stockman suggests you’d be crazy to hold anything but cash now, and maybe a few bars of gold. He thinks the Federal Reserve’s 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.

(Excerpt) Read more at theblaze.com ...


TOPICS: Business/Economy; Crime/Corruption; Front Page News; News/Current Events
KEYWORDS: collapse; dow; stockman; stocks
Navigation: use the links below to view more comments.
first previous 1-5051-82 last
To: LomanBill

You obviously haven’t studied how it’s done else you wouldn’t be showing your ignorance.

Start here:

http://online.wsj.com/article/SB124044199838345461.html


51 posted on 03/04/2012 12:59:04 PM PST by Hostage (The revolution needs a spark. The Constitution is dead.)
[ Post Reply | Private Reply | To 49 | View Replies]

To: bigdaddy45
Also, since 2000 you haven’t done too well... unless you bought AND HELD dividend paying stocks. In that case you’re likely doing just fine.

My mother has held a dividend paying stock since 2000. Right until 2008 the dividends were great but nothing since then. The stock? Oh, only Bank of America.

2000 price, $24.34. Current price, $8.13. Yeah, her dividends were just peachy but she lost her ass on principal. If she listened to me and pulled everything out in 2006 when I suggested she do so, she would have saved over $400,000. Instead, she lost her ass.

52 posted on 03/04/2012 1:13:51 PM PST by Freedom_Is_Not_Free (The only priority: Repeal Obamacare)
[ Post Reply | Private Reply | To 41 | View Replies]

To: LeopoldvonRanke

Compound interest... or reinvesting dividends. Your figures don’t take the compound interest of reinvesting dividends into consideration. To suggest that the stock market is a “ponzi scheme” is quite frankly something I’d expect to read on democratic underground. I’ll bet on the US economy and the US worker long term any day.


53 posted on 03/04/2012 1:16:48 PM PST by bigdaddy45
[ Post Reply | Private Reply | To 47 | View Replies]

To: Freedom_Is_Not_Free

Well no kidding... she held ONE dividend paying stock. And she picked a loser. Who’s fault is that? I said STOCKS. Plural. A diversified portfolio. Its investing 101.


54 posted on 03/04/2012 1:18:46 PM PST by bigdaddy45
[ Post Reply | Private Reply | To 52 | View Replies]

To: mojitojoe

I just wish I could wake people up to help them. We are in a secular bear but people won’t listen to me. It is like when we were screaming that housing was in a bubble and values were certain to crash. People just refused to listen. The shysters on CNBC say “best time to buy ever” and then think I am the idiot because all of these experts are saying to buy.

It is very frustrating to try to help people avoid taking a big loss when they won’t listen. I’m not saying they need to let me decide for them, and I’m not saying they would agree with my conclusions. I’m saying I can’t even get them to let me show them the underlying fundamental information so they can make a more informed decision.

It is supremely frustrating.


55 posted on 03/04/2012 1:20:57 PM PST by Freedom_Is_Not_Free (The only priority: Repeal Obamacare)
[ Post Reply | Private Reply | To 45 | View Replies]

To: juno67
People forget just how “off the reservation” he was.

Whose reservation..the folks that didn't want to slash spending?

56 posted on 03/04/2012 1:24:08 PM PST by mac_truck ( Aide toi et dieu t aidera)
[ Post Reply | Private Reply | To 39 | View Replies]

To: bigdaddy45

I haven’t even taken into account the fact that the government lies about their inflation numbers too since 1996 or so to make the market numbers look even better.

Yes, back in the 80’s your strategy made sense, but it hasn’t for quite some time now.

Where is the real economic growth going to come from?


57 posted on 03/04/2012 1:30:53 PM PST by LeopoldvonRanke
[ Post Reply | Private Reply | To 53 | View Replies]

To: Hostage

I understand how it’s done numb nuts.

There’s nothing wrong with the present constitution other than it’s being ignored.

Who you planning on having enforce your new and imroved edition, suuuper genius?


58 posted on 03/04/2012 2:28:45 PM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 51 | View Replies]

To: TweetEBird007

“He sold off nearly 90% stock holdings and put about 30 something % in property.

And, how did that work out?

Just wonderin.


59 posted on 03/04/2012 2:30:41 PM PST by GladesGuru (In a society predicated upon freedom, it is necessary to examine principles."...the public interest)
[ Post Reply | Private Reply | To 38 | View Replies]

To: LeopoldvonRanke

“Real” economic growth is going to come from the fact that our population keeps growing. More people needing more goods and services. Unlike Europe, especially Western Europe where populations are stagnant or shrinking. We are the engine of innovation and ingenuity in the world. Any new product of significance is generally developed in the US.

I think Obama is the worst President we’ve ever had. I can’t wait till he’s gone. His administrations policies are bad for business, and bad for the country. But in spite of that, I remain bullish on America. Thats what differentiated Reagan. He was perpetually bullish on America. I refuse to buy into the doom and gloom that our best days are behind us. We will get past this.

A decent chunk (not all) of my money is in the stock market. It will go up, it will go down. I started investing in earnest in 2000, and in spite of everything have done just fine. And for anyone with a long view, the US stock market is the best place for one to invest. If you disagree, thats fine. But going back to the original post, anyone who thinks that US stocks are a “ponzi scheme”, and haven’t been a good bet over the past 50 years is just flat wrong.


60 posted on 03/04/2012 2:50:38 PM PST by bigdaddy45
[ Post Reply | Private Reply | To 57 | View Replies]

To: bigdaddy45

Demographically the US is in better shape than Europe, but the population curve isn’t great.

With baby boomers retiring and hitting their peak earning years - the market isn’t going to increase, but decrease.

Not only is the generation coming behind them smaller, they also have about a 25 percent drop in their standard of living. This is going to be a drag on the economy, and real economic growth for the next 20-25 years.

Of course Obama and his policies are exacerbating the situation. The US was in the position to dominate the free world, but Obama in just 3 short years has squandered this position. Now America has a significant debt that is going to take about 10-15 years to fix.


61 posted on 03/04/2012 4:34:02 PM PST by LeopoldvonRanke
[ Post Reply | Private Reply | To 60 | View Replies]

To: LomanBill

No I don’t think you do understand how it’s done nor do you understand the present constraints in the politically intransigent bodies that are in DC.

The link I gave you above is by a highly respected constitutional law professor at Georgetown School of Law and who has more connections that you ever will to lawmakers and political power brokers.

It’s not about making a new constitution, it’s about a new amendment to reign in the commerce clause abuse and repeal the 16th which is at root of the socialism we now face and which will be used to uphold Obamacare.

So it’s about one amendment and the professor talks about how to do it at the statehouse level rather than the impossible congressional level. And in case you didn’t notice the Tea Party was even more successful at the state level in 2010 than in Wash DC.

So the information is there and it is good information even if you did not bother to read, at least others will.


62 posted on 03/04/2012 5:05:09 PM PST by Hostage (The revolution needs a spark. The Constitution is dead.)
[ Post Reply | Private Reply | To 58 | View Replies]

To: Hostage

>>No I don’t think you do understand

I don’t give a rats hiney what you think I do or do not understand ya flatulent gas bag.

You and your Georgetown Ivory Tower politico power whores can amend the constitution until you turn blue in the face.

That’s not going to stop the Marxist in the White Hut from wiping his arse with it.

THEY DO NOT GIVE A SHYTE WHAT THE LAW IS, get it?


63 posted on 03/04/2012 5:39:03 PM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 62 | View Replies]

To: Hostage
 
 
"The Swift Boat Veterans showed Lurch to be the massive phony that he is."
 

And who funded that nobly intentioned group, super genius?

The Progress For America fund...



... funded with fraudulent a$$paper from Ameriquest, that's who. And maybe crap like that is why the subject of this thread won't touch the stock market with a 100-Foot Pole.

Does your GeorgeTOON Professor have an amendment to correct the subversive demoralization of the sheeple that facilitated this systemic corruption of the financial infrastructure?

NO, evidently not.

ESAD is a double entente for which the lesser known meaning is that if you do, you will.

Bon Appétit.

64 posted on 03/04/2012 6:20:41 PM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 62 | View Replies]

To: bigdaddy45

From the Vampire Economy:

THE Berlin Stock Exchange still exists—as a building,
as an institution with large offices, with brokers and
bankers, with a huge organization for daily announcement
of stock and bond quotations. But it is only a
pale imitation of its former self and of what a stock
exchange is supposed to be. For the Stock Exchange
cannot function if and when the State regulates the flow
of capital and destroys the confidence of investors in
the sanctity of their property rights.
The glorious days when millions of marks daily
poured into the Stock Exchange, when the bonds and
securities of foreign countries were handled, when new
concerns and trusts were promoted and exciting speculative
maneuvers were staged—those glorious times have
long since departed, and even the doorkeeper who
vividly remembers the excitement of the “good old days”
does not believe that they will ever return. Yet the
decrepit machine still runs......................................


65 posted on 03/04/2012 6:25:53 PM PST by PeterPrinciple (Lord, save me from some conservatives, they don't understand history any better than liberals.)
[ Post Reply | Private Reply | To 29 | View Replies]

To: bigdaddy45

>>the fact that our population keeps growing.

Uhuh. Please press 3 for English.

How effectively would you say this “growing population” has been assimilated to the degree that they’d be willing to defend, or give their sons and daughters in the defense of, this country?


66 posted on 03/04/2012 6:27:41 PM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 60 | View Replies]

To: LomanBill

From what i’ve seen, there are quite a few hispanics in the US military. In fact, if you look at casualty lists, there are a lot of hispanic surnames. One of the first casualties of the Iraq war was a guy named Jose Gutierrez, a Guatemalan (not even a US citizen).


67 posted on 03/04/2012 6:36:15 PM PST by bigdaddy45
[ Post Reply | Private Reply | To 66 | View Replies]

To: bigdaddy45
[From what i’ve seen, there are quite a few hispanics in the US military]

I know there are Hispanics in the US military. I grew up with American Hispanics in the 60's and 70's,; but they'd been here for multiple generations.

Like my Russian Great Grandmother and her children and grandchildren, they spoke English; whereas more recent additions seem to delight in defiantly ~not doing so. They seem more intent upon effecting the Aztlan reconquista than on becoming assimilated into America.

I hope you are right. I hope that fellows like this...



...outnumber the other kind.

But we'll see.
68 posted on 03/04/2012 6:58:02 PM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 67 | View Replies]

To: LomanBill

Agreed. My father is a German immigrant and got drafted as soon as he got here. He could barely speak english!!


69 posted on 03/04/2012 8:02:52 PM PST by bigdaddy45
[ Post Reply | Private Reply | To 68 | View Replies]

To: LomanBill

It isn’t the Georgetown professor that is making it up. It is the Founders who left you a means to address grievances without Congress and without the President.

It is a backup plan that you and others should know about. You should be aware of it and know when it can be of use. It has been used before but when Congress saw how serious the People were when they were organizing to use it, they decided to get with the program and amend the Constitution according to the will of the People. So the backup plan was not used but it caused Congress to pay attention. And that is in the subtitle to Professor Barnett’s article “How Tea Partiers can make Washington pay attention”.

So the Georgetown professor is doing a public service by reminding and educating what the Founders left the People with in case Congress and the President let them down.

So I suggest readers take a look. It won’t hurt them to know what their options are:

http://online.wsj.com/article/SB124044199838345461.html


70 posted on 03/04/2012 8:30:13 PM PST by Hostage (The revolution needs a spark. The Constitution is dead.)
[ Post Reply | Private Reply | To 63 | View Replies]

To: Lazlo in PA
pumping stock and bond markets to dangerous heights...

Dems want the economy humming for election day... all the excess pumping will make the coming crash much worse - but hell, they want to get dems elected - and isn't that worth it? Let the country go broke - just to get more dems elected... /s

71 posted on 03/04/2012 8:36:04 PM PST by GOPJ (Democrat-media complex—buried stories and distorted facts... freeper 'andrew' Breitbart)
[ Post Reply | Private Reply | To 1 | View Replies]

To: gorush

“Wasn’t he the one who coined the phrase “voodoo economics” in response to Reagan’s “trickle down”?”

No, that phrase came from GHW Bush.


72 posted on 03/04/2012 9:56:20 PM PST by Pelham (Georgetown, Home of the Hoyas, Hos, and Flukers.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Skepolitic

“Second: “Trickle down” was the term coined by Democrats to disparage supply side economics. I challenge anybody to find a quote where Reagan used the phrase “trickle down”.”

Good point.


73 posted on 03/04/2012 9:58:19 PM PST by Pelham (Georgetown, Home of the Hoyas, Hos, and Flukers.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Hostage

Let us know when Prooofessor Barnett writes an article about why Doug Bruce, Tea Partier and TABOR author, is staring at the ceiling of a jail cell this evening. Ok?

Or maybe he’ll write an article about how the self-appointed “leaders” of the Colorado Tea party managed to endorse a Kansas ass-clown former LEO who, oops, got fired for feeding information to the local organized crime syndicate.

It’s all about “connections”, right dipstick?

I’ll say it again - a constitutional convention is the LAST Charley Foxtrotting can of worms we need opened in an environment of popular Useful Idiocy where the Wolves are managing the store on Wall Street; where We the Sheeple managed to put a Marxist Weatherman in the White Hut — and close to 50% of the Hopee Changee proletariat ~still thinks that was a good idea.

“How Tea Partiers can make Washington pay attention”

Simple. We Charlie Mike. We get more seats. We get their attention by pouring enough Tea into the Capital dome to scald the feathers off of any Party Parrot that manages to land in the White Hut - and we keep IMPEACHING them until we get an American POTUS again.

Don’t need no WallStreet Journal corporatista parrot wearing Juris Doctorate plumage to figure that out.


74 posted on 03/05/2012 12:13:35 AM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 70 | View Replies]

To: Hostage

>>without Congress and without the President.


Leaving it up to the States whose Attorney General legal Suuuuper Geniuses granted Argent Mortgage immunity in their deal with Ameriquest --immunity that was evidently gamed into a license to burn rape and pillage the Republic ala even more fraudulent A$$Paper? 

"At a recent fraud seminar attended by hundreds of mortgage lenders in Washington D.C. a week ago, an attorney who works for Argent's retained law firm, Buchalter Nemer, stood up and told the seminar attendees that the wholesale lenders in the audience had better beware, unless their name is Argent. Argent is safe from investigation because the government got their $325 million settlement from Ameriquest and won't be looking into Argent, per the settlement agreement. I hope this isn't true because Argent Mortgage funded over $50 billion in 2005 and is gearing up to fund well over $80 billion dollars of fraudulent loans in 2007."

http://www.innercitypress.org/ameriquest.html

Uhuh.

http://www.amazon.com/Monster-Predatory-Lenders-Bankers-America/dp/0805090460

FAIL. NO SALE.

 


75 posted on 03/05/2012 12:30:17 AM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 70 | View Replies]

To: LomanBill

Having trouble staying on message?

I don’t believe anyone on FR has written of a Doug Bruce as the face of the Tea Party movement.

And this litany of useless references of yours goes to revealing that you have a problem that you should seek professional help with. Suggest you seek that help and good luck with it.

Further personal attacks will have consequences.


76 posted on 03/05/2012 3:21:34 AM PST by Hostage (The revolution needs a spark. The Constitution is dead.)
[ Post Reply | Private Reply | To 74 | View Replies]

To: Freedom_Is_Not_Free
... he forgot to deduct his annual contribution made to his 401k ...

Remember the "Beardstown Ladies", a ladies' investing club that bragged about their investing performance in national media? Turned out that they innocently made the same mistake when calculating their rate of return.

77 posted on 03/05/2012 7:02:05 AM PST by Skepolitic
[ Post Reply | Private Reply | To 35 | View Replies]

To: Skepolitic

Amazing, but I think this is a common mistake people make. They don’t look past the obvious and some people are just no good with numbers. Of course, there are numbers and there are numbers.

I had a grandmother who was a numbskull with numbers, but if you put dollar signs in front of them, she became a human calculator.

I’m just not surprised by anyone who miscalculates their gains or their losses in the market. Many people don’t put a lot of thought and effort into something so important.


78 posted on 03/05/2012 9:26:58 AM PST by Freedom_Is_Not_Free (REPEAL OBAMACARE. Nothing else matters.)
[ Post Reply | Private Reply | To 77 | View Replies]

To: Hostage

[I don’t believe anyone on FR has written of a Doug Bruce as the face of the Tea Party movement.]

He’s more of an active “face of the Tea Party movement” than your jackwagon GeorgeTOON professor is.

Got TABOR?


79 posted on 03/05/2012 4:29:56 PM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 76 | View Replies]

To: Hostage

>>Further personal attacks will have consequences.

LOL. Go take your meds super spook.


80 posted on 03/05/2012 6:29:38 PM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 76 | View Replies]

To: LomanBill

So Loman, why didn’t you make a personal attack? Is it because you know you will face consequences? Thought so.


81 posted on 03/05/2012 10:01:06 PM PST by Hostage (The revolution needs a spark. The Constitution is dead.)
[ Post Reply | Private Reply | To 80 | View Replies]

To: Hostage

Yawwwwwwwn.

>>Thought so.

Still not much evidence of that.


82 posted on 03/05/2012 11:05:55 PM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 81 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-5051-82 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson