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Well as a White House lays down its control David Stockman says that the more risks damaging our economy because Ronald Reagan's budget chief.
-- the more these scandals -- to the president's problems the -- Washington will ever deal with our problems like our deficit.
Problems and the and that he says would be the biggest and potentially become -- -- Yeah -- it's unfortunate this is happening.
As one way eggs said when it comes to abuse of presidential power.
Obama is turning out to be the president that Nixon aspired to be -- -- I mean this is really unfortunate.
It went on outside and units -- the Nixon and -- but that.
How does this -- that.
It compared to Watergate -- you know what's so far it's way early in the process but some are citing the oddity of this is all forty years almost of today.
Yeah -- I listen I don't hit on Capitol Hill -- -- -- in all of this developed.
Lead from day today you didn't know what was gonna issue was -- -- next.
And -- spread it spread pretty soon it was like a whole scenario.
I remember that was supposed to be a left wing -- you have a real good president is that we -- or relatives yet so who knows -- it's unfortunate because they're huge problems facing the country.
And none of them are being addressed all the -- are being kicked in the budget is the most important.
And I think.
CDO is just as -- -- worthy of distracting.
The attention of congress -- these scandals going on because they put out a forecast yesterday.
That is just rosy scenario on steroids it's a familiar deficits are tumbling down revenues or common man and then the next thing you know they'll -- -- they.
You know -- Qaeda and an economy to catch you know this this CBO says problems solved this is what some blogger in the Washington Post says today.
Now the fact is if you believe the CBO forecasts I have some went to Florida swampland.
There -- suggesting that for fourteen years no recessions no economic dislocations.
We're gonna create seven times more jobs in the next decade and we didn't last decade wage and salary growth which is what drives revenue will be to the times.
What it has been since two -- -- I'm.
I want but I don't you don't they left on bright David I mean that's 642 billion dollar deficit figure.
Because a lot less than it was and well under the trillion dollars.
And you and I can remember a time when -- when deficits we're approaching a hundred billion dollars a normal well and we had appeared in Dallas celebrating 642 -- -- let anyone know -- -- that that is that is bad into the debt.
Of course of course -- also.
Fifty billion of that is a payment you know -- tax gimmick from Fannie Mae.
Where -- Fannie may get the fifty billion dollars they borrow it in many a debt market but a lot.
It is just couldn't coming tax increases -- and -- -- -- are you like to have well that part of it.
Is that -- temporarily because.
-- the fiscal cliff came at the end of the year there was a huge preemptive realization of capital gains.
Bonuses were paid and so -- probably 507500.
Billion is one time revenue that.
Equivalency repeated and don't get -- -- only getting ahead of ourselves what you're saying.
With these with a focus on these latest scandals -- and there are lots of them where we're going to be distracted.
So you have almost what I would call an imperfect storm.
You have the stock market in like a media we're hi I'm some kind of fed monetary crack cocaine.
That's the stock market you have Washington distracted with scandals you have CDO putting out totally rosy scenario phony forecast.
Telling everybody the problem solving itself.
And so therefore there is no hope that the political machinery will engage.
We'll drift into the 214 election both parties will be positioning.
And therefore another couple years or burned up meanwhile were adding to the national debt and the longer term -- regardless of this one time pick up.
That we had this year.
Is in the trillion dollar range as far as the eye can see.
And I -- -- golden moment we have to address something has wandered in and -- now now now let -- let me get.
That -- there are a lot of you look at this soaring market and they've been saying another spin on it.
Well it's time he's the president spending initiatives and he can make government bigger and it can't.
Head of his health care monstrosity.
That's kind of what's going on here besides the better than expected earnings and besides the -- -- all right that's the backdrop what do you make of -- Well I don't really buy that because I think the Fed is fueling this boom I mean if you really have watch what people say every day MTV the Fed has my back.
The economy I don't know has better or worse here for its dominant on that release and how bad will never leave little by 85 billion dollars a month as far as the eye can see what this tells congress is you can borrow.
Five year money for eighty basis points okay free it's a round leaving -- as far as they're concerned.
And so the Fed is enabling the kind of paralysis so how long can that game -- -- I don't I scandals aside I don't think it's that long because all the central banks the world are doing the same thing and we clearly now have a race to the bottom why is the dollar are rising a little bit in the last that a few weeks.
Because the Japanese Central Bank is even worse.
Because the ECB is likely to -- even more -- over the next few months.
Lawrence's turn that around there we go into a full throttle Watergate type summer of investigations are too.
The IRS incident just apartments are gonna reporters and have been -- and who knew what and when I thought we weren't -- -- -- You remember the Watergate summer -- -- and the huge destruction.
What would happen now.
-- things can sneak up I mean if Washington becomes totally paralyze it almost is already this will finish the case.
And the -- is finally in a position where it's got to give some signal he can't just keep buying 85 billion a month.
You -- -- now until the end of time.
And so I -- It was an accident waiting to happen this market is entirely artificial it's sort of people doing -- one day at a time thinking they'll be Smart enough to get out before -- heard.
Start stampeding before any exit it's not gonna happen this is the most superficial.
Market that we've had even going back to 2072 -- I -- it's not it's the fourth bubble of this century okay we had dot com splattered all over.
Five trillion was destroyed we have the housing bubble splattered all over millions of people were hurt.
Then we had the Wall Street -- in 08.
And now they've simply.
Briefly did the same bubble -- -- you've got sub prime back in auto loans.
You've got people speculating and housing market again particularly the hedge funds going out and becoming you know well I think it's a long ways from.
Memorial none out in some of the markets prices are up 30% I don't fault depressed -- well off the -- levels but who knows what the right level there are there are very organic buyers coming back in you know why because the young people got so much student debt.
They can't afford a down payment.
And the baby booms as they retire going to be selling the castle not buying it where where are the buyers coming from.
People of middle -- are buried in debt or their homes are basically barely worth the mortgage time.
Well you know that I want you to stop this is a president -- I thought on daily shots actually understood understood and -- I hope a lot of you have had -- -- There on the it is not you know there's always breakfast I -- Did they think you're very much -- to be done.
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