Hillary Clinton has the presidential election in the bag, but it won't stop a recession from coming, says Reagan administration aide David Stockman.
The former director of the Office of Management and Budget and author of "Trumped! A Nation on the Brink of Ruin" believes that the economy is already in trouble, especially given current macroeconomic trends.
"Growth over the last four quarters has averaged 1.3 percent, that's barely stall speed [and] we have inventories building up," Stockman said Tuesday on CNBC's "Futures Now." "If you look at concurrent indicators of the economy such as freight shipments and so forth, they're weak and negative. Capital spending is down double digits and exports are down and so forth."
According to Stockman, this time the economy can expect "no rescue" to come from Washington should it sink and the election will be the main reason. While many analysts believe the market will pop given a Clinton victory, Stockman believes the economy is in trouble regardless of the result.
This is because Stockman predicts Congress will be "totally dysfunctional" once Clinton is in office, as lawmakers may not be able to come together and work out solutions leading to economic growth given how many divisions the election has caused.
What could make it even worse, according to Stockman, is political action taken against Clinton within the first few months of her presidency.
"I think it's going to be so contentious in the House because [Paul] Ryan has moved to protect his House majority, that it's very likely that investigations will begin immediately," he said. "And within any kind of excuse, they will try to impeach Hillary Clinton barely after she gets in office."
In other words, political gridlock and a Clinton impeachment could be on the way, and the market will be a victim.
"When the stock market stumbles and the economy begins to actually register negative growth, which I think is coming if not next quarter certainly in the first half of next year, there's going to be nothing below and the market is going to go through a massive contraction," said Stockman.
"I think it's going to be a very nasty time in the year ahead," he added.
An average of national polls tracked by Real Clear Politics has Clinton ahead of Republican nominee Donald Trump by an average of 6.5 percentage points as of Tuesday. The NBC News/WSJ and Atlantic polls have the Democratic candidate ahead by double digits.