Former Reagan administration aide David Stockman has a message for the next president: The markets are going down for the count and you can't do anything about it!
President Ronald Reagan's director of the Office of Management and Budget said in a recent CNBC interview it doesn't matter if Hillary Clinton or Donald Trump gets elected in November — neither will be able to stop the economic meltdown that's looming.
Wall Street seems to have its mind made up about which candidate it prefers. More than 70 percent of respondents to a recent Citigroup poll of institutional clients said the former secretary of state, first lady and New York senator would likely become the U.S.'s 45th president. Just over 10 percent gave Trump the nod, and small business owners appear to be divided between the GOP and Democratic standard bearers.
Stockman, however, doesn't believe either one can prevent what may be on the horizon.
"There's no way the next president can stop a recession that's already baked into the cake," Stockman said Thursday in the "Futures Now" interview. Stockman has been calling for a major market downturn and global recession for some time, but he is more certain than ever that it could happen during this political cycle.
He pointed to depleting earnings, peaked auto sales, inventory ratios and issues in the freight and rail space as some key indicators that the U.S. economy is more unstable than people would like to believe. "The idea that this economy is somehow going to get stronger in the second half, or that the next president can stall a recession I think is wrong," he said.