Stockman Warns of Crash Of Fed-Fueled Bubble EconomyBy Richard Rubin
Apr. 02, 2013
Unhinged Lunatic Freaks Out On Trump Supporter, Says Trump is an Anti-Semite
Sweden's Migrant Crime Wave Becomes Top National Story As Media's Lies Backfire
'Trump Was Right': Migrants Riot, Loot, Fight With Police And Set Cars On Fire In Sweden
Berkeley Prof Robert Reich Blames Trump For Riot In Sweden
Women's March Mocked After Calling For 'Menstrual Equity'
The U.S. economy is in a bubble inflated by “phony money” from the Federal Reserve and will burst within a few years, warned David Stockman, who was budget director for President Ronald Reagan.
In an essay published yesterday in the New York Times (NYT), Stockman wrote that the Fed’s quantitative easing policies following the credit crisis have flooded stock markets with cash even while the “Main Street economy” remains weak. The combination, he wrote, is “unsustainable.”
“When it bursts, there will be no new round of bailouts like the ones the banks got in 2008,” wrote Stockman, a former senior managing director at Blackstone Group LP (BX) and a former Republican congressman from Michigan. “Instead, America will descend into an era of zero-sum austerity and virulent political conflict, extinguishing even today’s feeble remnants of economic growth.”