Dave Stockman: We've Had a Dead Cat Bounce, Only Thing Left Is to Bury the Cat

DAVID STOCKMAN: I think we're still in no man's land. The only thing left--we've had a dead cat bounce and it's been strong--the only thing left is to bury the cat.

There is a global deflation seriously under way. There is a recession heading in this direction, maybe by the end of the year, maybe next year. The earnings in the market are dropping rapidly. People don't look at GAAP earnings, but they should. The year is over. It was $86.44 per share on the S&P 500. That's down 18 1/2 percent from 18 months ago when it peaked in the September 2014 LTM. Earnings are down 18 1/2 percent and this quarter looks even lower.

When you're facing the kind of headwinds we have all around the world, when you have central banks out of dry powder, when you have, you know, the display that we saw last week...I think we are in an extremely unsafe world.