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Be afraid be very afraid that is the warning today from president Reagan's formal budget director.
The -- more than doubling since 2009 -- -- -- but don't get too comfortable because it David Stockman is right this bubble is ready to bust.
I spoke from a short time ago on the Fox Business Network.
Lives and dies by the last word of the Fed.
And the people at the Fed have no clue what they're doing Bernanke is the most dangerous man ever to hold.
-- financial office in the history the United States -- -- the most dangerous man ever to hold -- financial office in the United States -- tobacco is with -- -- agreement.
I have to do a group mr.
stockman on this one right now -- I mean we are in a heap of trouble.
Most of the trouble which mean you have talked about over the past couple years comes from Ben Bernanke's policies one of the main policies being.
That he is lending through the Federal Reserve Bank money to the major banks and financial institutions of America.
At zero so he's charging them nothing and then convincing them to buy back US treasury bonds when they guaranteed a return.
So it's basically a governmental Ponzi that's causing more more debt to be built up by our government just to keep the markets propped.
And read some -- -- some items from what he had to say it is pretty dramatic stuff assault with this.
Within a few years I predict this latest Wall Street bubble inflated by an egregious -- the phony money from the Federal Reserve rather than real economic gains will explode.
There's another one.
When the latest bubble pops they'll be nothing to stop the collapse -- the would collapse.
If this sounds like advice to get out of the markets and hideout in cash -- it style of John.
There's a lot of fringe people who is saying something like this but you can't -- David Stockman the fringe kind of guy.
He's Ronald Reagan's budget director and he's a successful investment.
Bank of this got you can't just dismiss it and you can't dismiss him and I think we've been saying this for years but when someone like David Stockman says it -- -- really perk up your -- and listen.
That the US economy is forcing investors into the market which is creating artificial confidence that our economy is doing well.
But our economy right now is shrinking.
And really what's happening is bond yields -- low.
Interest in the bank is effectively zero so people have nowhere to go with their money it's almost like Ben Bernanke has created.
A tri -- system where he -- to the banks so they buy bonds they keep interest rates low.
And retail investors and institutions have no choice but seek return but to go into the capital markets and that's artificially inflating numbers of people -- underneath this inflated market -- on points out -- -- no real economic gain you still got very very high unemployment.
He says look we've averaged only 171000.
New jobs a month since the year 2000 we need a 150 pounds right he's saying that you've you've seen this bubble on top of a no growth.
To go nowhere economy that's why we've been such a hard time just on the road but he gives us a couple of years of leeway that's gonna -- -- I don't know if his -- exit is exactly right Stuart because a couple of years of the long time to look out we have a book of government bubble now sitting on top of the housing bubble.
And on top of and employment morass where -- week people have no jobs so people have.
No jobs they have no money we have a government that needs to borrow more money through a scheme and when the bubble -- it's not going to be one -- it's going to be a bunch of them.
And it doesn't look like there's going to be a soft landing well John tobacco have a realist -- -- serious stuff it really is all right John thank you.
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