David Stockman says the business cycle is now basically a bubble cycle.
Since the last crisis, the stock market bubble has been blown up by low interest rates, multiple stimulus programs and more recently by corporate buybacks. Let's be honest: in the old days, rising stocks were generally the product of rising industrial output, rising employment and rising wages. Today, we have none of that. Full-time jobs have been replaced by part-time jobs, wages have fallen accordingly and cost cutting has become a primary source of corporate profit.
What has happened to our economy?
David Stockman knows his macroeconomics. He knows what makes the economy tick and what can destroy it. He served in the Reagan administration as Director of the Office of Management and Budget. He has also literally written the book on economic history in the last century or so in the United States (The Great Deformation by David Stockman). He understands how the Federal Reserve distorts the market and that the market is addicted to that distortion.
Accordingly, he has some incredibly informed opinions on the financial bubble cycle and about when he expects the next big pop and crash. (HINT: SOON)