Bernanke: There is no stock bubble

[Capt Worley PE]

"I don't see much evidence of an equity bubble," Bernanke told the Senate Banking Committee in his semi-annual testimony on Tuesday.

http://money.cnn.com/2013/02/26/news/economy/bernanke-stock-bubble/index.html?iid=HP_LN

of course, he had this to say in the past:

(October 20, 2005) "House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals."

(January 10, 2008) "The Federal Reserve is not currently forecasting a recession."

(March 28, 2007) "At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency."

(July, 2005) "We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."

(May 17, 2007) "All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable."

(Two months before Fannie Mae and Freddie Mac collapsed and were nationalized) "They will make it through the storm."

So, take it for what you will.

 

[cdcengineer]

I'm not clear where the bubble is? It's hard to believe the market is over 14k, but companies have been stock piling cash so this could be the reason for the near record highs. Housing doesn't seem inflated (at least here in CO). Education is over priced and the price of food seems ridiculous. As far as I can tell, the crushing debt is the only inflated value I'm aware of.

 

[roadwreck]

For some reason all I can think of is this: