“I think it’s going to be a very nasty time in the year ahead,” said David Stockman during an exclusive interview with CNBC’s Futures Now last week.
David Stockman served as a two-term congressman from Michigan (Rep) and is also the former director of the Office of Management and Budget under President Reagan’s administration. Following his time at the White House, Stockman was a managing director on Wall Street. He is now the founder of David Stockman’s Contra Corner and a best selling author.
The economist when on to say, “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…”
David Stockman’s latest book TRUMPED! A Nation on the Brink of Ruin… And How to Bring It Back gives his inside scoop on how America came to this point and what the next president must do to correct our dangerous trajectory.
“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.
When asked on the election and the markets Stockman said unabashedly, “I think there has clearly been a BREXIT factor out there… We are going to have the worst of all worlds… An awful election and a completely dysfunctional government.”
Ed. Note: The Daily Reckoning has an exclusive of book excerpt of Trumped! A Nation on the Brink of Ruin… and How to Bring it Back by David Stockman here. In this sneak preview you will see Stockman’s urgent election analysis and just what is needed by the next president to correct our national trajectory. Click here, in case you are not signed up for The Daily Reckoning’s FREE newsletter.
This story originally appeared in the Daily Reckoning