Stockman is deeply critical of the Fed’s grand experiment and he is right, it will end in ugliness. Probably an historic ugliness. When? No one can say, we are operating in sort of an economic hall of mirrors right now. (And have been for a long time.) Things are distorted all over the place. However, even in a hall of mirrors gravity continues to work. Like gravity, the market mechanism also continues to work no matter what the current economic reflection. Sooner or later Mr. Market will make his presence known and likey will kick some serious central bank distorted arse.
(From Newsmax Finance)
Stockman said he expects a recession by the end of this year or next, which he forecasts will be followed by “massive panic and selling” on Wall Street, FBN reported.
“It’s hard to say what the black swan is, but right now, if we look at this economy, inventories are building up. If we look at transportation, for instance, rail traffic is down 10%, trucking traffic is down, manufacturing has been negative for months,” he said.