David Stockman Fears "Panic" When The "Lunatic" Fed "Loses Control"
Tyler Durden

"It's only a question of time before the central banks lose control," David Stockman warns a shocked CNBC anchor, "and a panic sets in when people realize that these values are massively overstated."

The outspoken author of The Great Deformation rages "the Fed is exporting its lunatic policies worldwide," as central banks around the world have followed the Fed's lead, "for either good reasons of defending their own currency and their trade and their exchange rate, or because they're replicating the Fed's erroneous policies."

If one cares to look, Stockman adds, "there are bubbles everywhere," citing Russell 2000 valuations of 75x LTM earnings as an example, "that makes no sense. It's up 43% in the last year, but earnings of the Russell 2000 companies have not increased at all." This is dangerous, he strongly cautions, "I haven't seen too many bubbles in history" that haven't ended violently.

"I'm not drinking the Kool-Aid..."

"Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated everywhere."

Mr. David A. Stockman serves as Senior Managing Director and the Founding Partner of Heartland Industrial Partners a buyout firm, established in 1999, focused on industrial buyouts and buildups. Mr. Stockman served as Chief Executive Officer of Collins & Aikman Corporation from August 11, 2003 to May 12, 2005 and its Chairman from August 2002 to May 12, 2005. He served as Managing Partner of Heartland Industrial Partners, L.P. From 1976 to 1981, Mr. Stockman represented Southern Michigan in the U.S. House of Representatives.

Mr. Stockman served as Senior Managing Director of The Blackstone Group LP, a highly successful private equity group and was with Blackstone since 1988. He was an General partner in Blackstone and played a leadership role in some of its most successful leveraged buyout investments such as Republic Technologies Inc., DeBartolo, LaSalle Re and UCAR International. Prior to joining Blackstone,

Mr. Stockman served as a Managing Director in the Corporate Finance Department of Salomon Brothers, Inc. Mr. Stockman served as the Director of the Office of Management and Budget in the Reagan Administration and was the youngest Cabinet member of the twentieth century. He served as the Chairman and Director of Imperial Home Décor Group Inc. since March 1998. He serves as a Director of Haynes International, Inc., Haynes Holdings, Inc., Clark USA, Inc., Clark Refining & Marketing, Inc., American Axle Manufacturing of Michigan, Inc., American Axle Manufacturing, Inc. and Bar Technologies, Inc.

Mr. Stockman serves as a Director of Springs Industries, Inc. ("Springs"). He served as a Director of Metaldyne Corp. from November 28, 2000 to June 14, 2005. Mr. Stockman served as a Director of Trimas Corp., a holding company of Trimas Co. LLC from June 2002 to June 29, 2005. Mr. Stockman served as a Director of Collins & Aikman Corp. from February 2001 to May 12, 2005. He is the author of a best-selling book, The Triumph of Politics; How the Reagan Revolution Failed. Currently, Mr. Stockman serves as a member of the Council on Foreign Relations. He was honored in 1980 as one of the Jaycees' 10 Outstanding Young Men of America. He also received the Council for National Policy's Thomas Jefferson Leadership Award for Outstanding Public Service and was designated by the International Platform Association as the Most Effective National Conservative Voice for 1981. Recently he was chosen as the inaugural recipient of Buyouts' Pro of the Year for 2000. Mr. Stockman holds a Bachelor's Degree from Michigan State University and did advanced work at the Harvard Divinity School.

Mr. Stockman resides in Greenwich, Connecticut along with his wife, Jennifer Blei Stockman, and is the father of two children, Rachel and Victoria.

www.zerohedge.com