If one cares to look, Stockman adds, “there are bubbles everywhere,” citing Russell 2000 valuations of 75x LTM earnings as an example, “that makes no sense. It’s up 43% in the last year, but earnings of the Russell 2000 companies have not increased at all.”This is dangerous, he strongly cautions, “I haven’t seen too many bubbles in history” that haven’t ended violently.
“I’m not drinking the Kool-Aid…”
Alert: Bailing Bankers-V-THE GUERRILLA ECONOMIST This is very serious and time must not be wasted. I am deeply concerned.
The Russell 2000 is overvalued by 30%, the DOW a whopping 67%, the NASDQ 50% and yet the morons on “the street”and the talking heads on TV are reporting that the good times are here again. How can the market be this high when every major indicator of economic data defiantly shows a continued contraction?
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