{"id":18082,"date":"2016-02-22T16:08:27","date_gmt":"2016-02-22T21:08:27","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18082"},"modified":"2016-02-22T16:08:47","modified_gmt":"2016-02-22T21:08:47","slug":"david-stockman-cnbc-interview-i-dont-know-what-the-bulls-are-smoking","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18082","title":{"rendered":"David Stockman CNBC Interview: \u201cI don\u2019t Know What The Bulls Are Smoking\u201d"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/www.cnbc.com\/2016\/02\/19\/i-dont-know-what-the-bulls-are-smoking-stockman.html\" target=\"_blank\">David Stockman CNBC Interview: \u201cI don\u2019t Know What The Bulls Are Smoking\u201d<\/a><\/h3>\n<h2 class=\"entry-meta\"><iframe loading=\"lazy\" src=\"http:\/\/player.cnbc.com\/p\/gZWlPC\/cnbc_global?playertype=synd&amp;byGuid=3000494842&amp;size=530_298\" width=\"530\" height=\"298\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/h2>\n<\/header>\n<div class=\"entry-content\">\n<div class=\"pf-content\">\n<p><iframe loading=\"lazy\" src=\"http:\/\/player.cnbc.com\/p\/gZWlPC\/cnbc_global?playertype=synd&amp;byGuid=3000494840&amp;size=530_298\" width=\"530\" height=\"298\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><iframe loading=\"lazy\" src=\"http:\/\/player.cnbc.com\/p\/gZWlPC\/cnbc_global?playertype=synd&amp;byGuid=3000494837&amp;size=530_298\" width=\"530\" height=\"298\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Anyone who believes that the global economy isn\u2019t crashing must be delirious, according to David Stockman.<\/p>\n<p>The former director of the Office of Management and Budget argues that a rapidly deteriorating economic environment is going to send stocks and oil prices spiraling even lower than they already have.<\/p>\n<p>\u201cI think your traders are smoking something stronger than what I can legally buy here in Colorado,\u201d Stockman said Thursday on CNBC\u2019s \u201c<a href=\"http:\/\/www.cnbc.com\/futures-now\/\" target=\"_blank\">Futures Now<\/a>.\u201d<\/p>\n<p>The\u00a0<a class=\"inline_quotes\" href=\"http:\/\/data.cnbc.com\/quotes\/.SPX\" target=\"_blank\" data-gdsid=\"593933\" data-inline-quote-symbol=\".SPX\">S&amp;P 500<\/a>\u00a0has fallen 6 percent year to date, and\u00a0<a class=\"inline_quotes\" href=\"http:\/\/data.cnbc.com\/quotes\/%40CL.1\" target=\"_blank\" data-gdsid=\"49031016\" data-inline-quote-symbol=\"@CL.1\">crude oil<\/a>\u00a0has plunged more than 17 percent. However, Stockman still sees a long way to go. He expects the S&amp;P 500 to drop to 1,300 before making any new highs, and sees oil falling below $20.<\/p>\n<\/div>\n<\/div>\n<div class=\"pf-content\"><\/div>\n<div class=\"pf-content\">\n<p>Investors have been too optimistic about the U.S. economy because they are not factoring in global risk, said Stockman, who expects to see a recession by the end of the year.<\/p>\n<p>\u201cEverywhere trade is drying up, shipping rates are at all-time lows,\u201d he said. \u201cThere is a recession that\u2019s going to engulf the entire world economy, including the United States.\u201d<\/p>\n<p>Contributing to the turmoil is the ineptitude of central banks, he said. While Stockman doesn\u2019t expect the\u00a0<a href=\"http:\/\/www.cnbc.com\/id\/43752521\" target=\"_blank\">Federal Reserve<\/a>\u00a0to adopt a negative interest rate policy, he said monetary policymakers have exhausted all other options.<\/p>\n<p>\u201cThey should have the good graces to resign. They are lost. None of this is helping the economy,\u201d he said.<\/p>\n<p>Add in the 2016 presidential election, and Stockman said the markets will find themselves in a situation similar to that of the global financial crisis.<\/p>\n<p>\u201cThe out-of-control election process will feed into and create an environment that we haven\u2019t seen since the fall of 2008,\u201d he said.<\/p>\n<p>Of course, this isn\u2019t the first time Stockman has been bearish. For years, he has been predicting a crash worse than 2008.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>David Stockman CNBC Interview: \u201cI don\u2019t Know What The Bulls Are Smoking\u201d Anyone who believes that the global economy isn\u2019t crashing must be delirious, according to David Stockman. The former director of the Office of Management and Budget argues that a rapidly deteriorating economic environment is going to send stocks and oil prices spiraling even [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[4793,964,2120,303,305,12528,1716,841],"class_list":["post-18082","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bull","tag-cnbc","tag-david-stockman","tag-fed","tag-federal-reserve","tag-futures-now","tag-sp-500","tag-us-economy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18082"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18082\/revisions"}],"predecessor-version":[{"id":18084,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18082\/revisions\/18084"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}