Dave Stockman: Recession Will Engulf 'The Entire World' including U.S.

Former Reagan OMB Director David Stockman talks stocks, oil, the Fed, and whether we can expect a recession this year. The whole interview is worth a listen.

DAVE STOCKMAN: This was a dead-cat bounce and they've already buried the cat!

I want to weigh in on the oil discussion you've just been having. Frankly, I think your traders are smoking something stronger than I can legally buy here in Colorado. The oil price is heading into the teens because the world economy is falling apart.

We're done with the 20-year credit bubble. The central banks everywhere are lost. Out of dry powder.

Look at the data coming in year-to-date, and this is why I think the stock market is going down too. Every bellwether economy--exports in Japan down 13 percent last night in January, China down 10 1/2 percent, India down 13 1/2 percent, Korea down 8 1/2 percent. Everywhere trade is drying up. Shipping rate are at all-time lows. Singapore is essentially crashing.

And that means there is a recession that's going to engulf the entire world economy including the United States.