David Stockman Says Fed Policies, Government Debt, Threaten the Future

Former OMB director says decline may be irreversible

David Stockman, a director of the Office of Management and Budget in the Reagan administration, said Monday that if people hate their children, they should cheering on the policies being pushed by the Federal Reserve.

"The real economy is failing," Mr. Stockman said on MSNBC's "Morning Joe." "We are in trouble. The Fed is just inflating a third bubble by this zero interest policy and by this insane purchase of $85 billion in government debt a month, telling Washington, 'Don't do anything about the deficit, go out, have a party, bury yourself in debt.'"

"The policy today is that if you hate your children, you will love what Washington is doing because they are burying them in debt," Mr. Stockman said.