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Radio Interview – Ponzi Monetary Policy, Buffett’s Favorite Valuation Indicator and Real Estate…

Here’s a radio interview I did last week with Dan Cofall on 1190AM.  My segment starts around the 4 minute mark.  Some of the topics covered:

  • Explaining why monetary policy that directly targets stock prices can be misguided.
  • The Bernanke Fed is essentially implementing the same “wealth effect” strategy that the Greenspan Fed lived and died by.
  • Explaining Warren Buffett’s favorite valuation index – the Wilshire 5,000 relative to GNP.
  • I don’t think we’re currently in a stock market bubble, but I think this valuation indicator should be paid close attention to as it tends to show instability in asset prices when it’s well above the 100% level.
  • Why I think housing has probably bottomed, but will not boom again.

Listen in here.

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