David Stockman: Both US Parties Are Now Advocating DEFAULT

David Stockman

David Stocksman, the former Reagan advisor-turned-deficit hawk sees “no hope” of the two parties coming to an agreement on the US debt, because neither party is willing to compromise on either spending or taxes (depending onw which party you’re talking about).

The only hope is a fiscal wakeup call in the form of major bond market selloff, he just told Bloomberg TV

He sees that happening after QE2 ends, when the Fed gets out of the market.

The key thing, which ke thinks people need to realise is that both parties are essentially advocates of default: The Democrats via their refusal to reform entitlement, and the GOP with their refusal to budge on taxes.