Washington DC

Third Bull Run

By David Stockman  |  September 7, 2018

What do you get for pretending the danger’s not real
Meek and obedient you follow the leader
Down well-trodden corridors into the valley of steel
What a surprise

– Pink Floyd, “Sheep” (1977)

November’s midterm elections loom large among the Donald’s potential triggers.

A lot will happen between now and then. But let’s just say the market is “average” through September and October.

Now, history tells us this is the worst time of the year for stocks. From September 6 to October 29, the Dow Jones Industrial Average typically loses 2.31%.

Indeed, the major averages were largely in the red Thursday. And Friday’s open suggests a mini-downtrend into the weekend.

Still, we’re not sure which pictures are more relevant.

There charts showing the Dow, the S&P 500 Index, the Nasdaq Composite, and the Russell 2000 Index all still really just hair’s breadths away from all-time highs.

And here are lemmings spilling into the Irish Sea…

The president is doing what he does, and he’ll hold on to a politically significant rump of the GOP.

See Billings, Montana, on Thursday night: “You didn’t go out to vote – that’s the only way it could happen. I’ll be the only president in history they’ll say: ‘What a job he’s done! By the way, we’re impeaching him…'”

Still, come January 3, 2019, the Donald will probably face a Democrat-controlled House of Representatives.

The Senate will probably stay in Republican hands. And that should be enough to protect him from an impeachment conviction.

He’ll also have cover to fire Jeff Sessions and install someone more inclined to the president’s understanding of “justice,” particularly as it relates to the 2016 election.

Lindsey Graham and Chuck Grassley, the top GOP dogs on the Senate Judiciary Committee, recently made it crystal-clear to the Donald that he should feel free to shit-can the attorney general.

This is big. Save for Sessions’ recusal, the entire Mueller witch-hunt never would have happened.

This may be just a last-ditch counterattack.

But a GOP-controlled Senate still has the capacity – perhaps in a “lame duck” session – to confirm a new leader for the Department of Justice.

And a new attorney general would move – quickly – to shut down Russiagate.

Just as quickly, they’ll open up a new witch-hunt against Democrat meddlers in the 2016 election.

The fallout from Mueller won’t go away, though.

It’s about more than “Russia collusion” dirt, because there obviously isn’t any.

But turncoats like Michael Cohen hold loads of evidence about the Donald’s lifetime of dealings. And there are some big, ugly piles – which they moved heaven and earth to hide during his presidential campaign.

It’ll all come tumbling out, and soon.

Cohen has actually been taken hostage by the very politburo of the Deep State. He’s now bootlicker to Hillary Clinton’s very own political manservant, Lanny Davis.

He’s their revenge card. And they intend to play it, and hard.

It’s a whole new stage of the ballgame.

And the end is coming into ever-sharper focus…

We know the Federal Reserve will tighten right into the jaws of the next financial crash.

And how could it be otherwise, with today’s employment report finally showing signs of decent wage growth on Main Street?

But there’s still no evidence the economy can grow remotely fast enough to justify such absurd prices on Wall Street.

And there’s not a snowball’s chance in hell we can avoid recession another 24 months.

There is an outright collapse of governance underway.

Imperial Washington is set up for a mighty uncivil conflagration – Third Bull Run, if you will.

And there the lemmings go, right over the cliff…

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David Stockman

David Stockman is the ultimate Washington insider turned iconoclast. He began his career in Washington as a young man and quickly rose through the ranks of the Republican Party to become the Director of the Office of Management and Budget under President Ronald Reagan.MORE FROM AUTHOR