FINANCIAL CHAOS WARNING: Huge Trump storm looms over Wall Street, says ex-Reagan director
A HORRENDOUS storm is gathering over Wall Street, as Donald Trump’s failure to push through promised tax and economy reforms is set to wreak chaos, according to a chilling prediction by a former US budget director under President Ronald Reagan.
By LANA CLEMENTS
Express.co.uk
Mon, Jun 12, 2017
Stocks could plunge by more than a third in the coming months, wiping out all of the gains and more that have been made since the republican won the US election in November, said David Stockman.
The ex-director of the Office of Management and Budget said the current climates is one of the most dangerous he has ever witnessed.
Critics are determined to unseat Mr Trump, and it’s looking more and more unlikely that Congress will pass the President’s tax reforms and infrastructure spending plans before the suer recess, said Mr Stockman.
The policies are one of the major factors in boosting stock indices including the Dow Jobes, S&P 500 and Nasdaq to record highs.
Yet investors on Wall Street are turning a blind eye to the political situation, warned Mr Stockman.
He told CNBC: “This is one of the most dangerous market environments we’ve ever been in.
“It’s the calm before a gigantic, horrendous storm that I don’t think is too far down the road.”
Referring to the gains made in stocks, he said: “This is a huge nothing-burger, but you don’t take comfort from that.
“You get worried about that because the system is determined to unseat Donald Trump.”
It comes after former FBI Director James Comey was last week called to testify over whether President Trump tried to influence an investigation into his administrations links to Russia.
Mr Stockman said: “If the Senate can involve itself in something this groundless, it’s just more hysteria about Russia-gate for which there is no evidence.
“If they can bog themselves down in this, then we have a dysfunctional, ungovernable situation in Washington.”
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