Tuesday, January 24, 2012

David Stockman: 2013 Will Witness a Massive US Fiscal Crisis

It's difficult to find a market-watcher these days who isn't a self styled "macro expert." Almost all these experts continue to sip the soup du jour i.e. the European financial alphabet soup (ECB, EFSF, SMP), and very few have focused their short attention spans on the US. They would be wise to head cassandra's like David Stockman, Ronald Reagan's former budget director and a favorite of our's. The US is hardly in better shape than Europe is, and it's time we got our own fiscal house in order before the market forces us to...

"We have painted ourselves into a corner, we have had massive fiscal stimulus it has had very little affect, our economy has been structurally ailing for about a decade and then we are going to be facing at the end of this year a massive conflagration fiscally when all the tax cuts expire."

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