David Stockman Warns: S&P 500 Is Set to Crash up to 35 Percent

RUSH EXCERPT:

STOCKMAN: "Hey, Stuart, I could have said that in February 2000, and the market dropped by 60%. I could have said that in November 2007 and the market crashed. I could have said it, I'm old must enough to remember October 1987. Okay, markets go up on an escalator, they come down on an elevator. This is the most hideously overvalued market in history. It is trading today at 25 times -- now, let me finish -- the $100 a share that the S&P 500 earned in the period ending in March. Now, I go back ten years to June 2007. The S&P 500 earned $85 a share. That's 1.2% growth nominal in ten years, and cow want to pay pay -- and you want to pay 25 times earnings going into a world where the fed yesterday said we're going to shrink the balance sheet by $2 trillion over the next several years, where we have a government that is in total chaos, a president they're trying to unseat, a debt ceiling that can't be raised, a tax bill that will never pass. Going into all of that, to say nothing of the red Ponzi in China one of these days spilling its guts all over the world economy, and you want to pay 25 times earnings for today's stock? Be my guest. This is a mania. This is a mania."