David Stockman Exposes The “$20 Trillion Elephant In The Room”

“That US stocks returned to record highs last month – picking up steam even as the world teetered on the bring of another debt crisis – has prompted even the most tenacious bears to recalibrate their forecasts, an effort, we think, to appease investors and clients who are luxuriating in the seemingly unstoppable gains of what is now the longest bull market in US history.

But while the wash of record returns (on paper, at least) has helped assuage the nagging doubts of many a “rational” investor, others are clinging ever-tighter to a pragmatic – if uncomfortable realismAnd one of the most strident voices among this group has been David Stockman, formerly the director of the OMB under Ronald Reagan and now the author of Stockman’s Contra Corner.”