David Stockman Rages Market “Valuation Has Lost Any Anchor To The Real World’ (Video)

David Stockman Rages Market “Valuation Has Lost Any Anchor To The Real World” (ZeroHedge, Dec 9, 2013):

The current malaise of news, data, and spin is “meaningless,” David Stockman tells Bloomberg’s Tom Keene, adding that markets are exhibiting “the kind of speculative froth you get at the top of a cycle where valuation loses any anchor in the real world; from earnings or the prospects of the economy.” As he argued before, “owning stocks here is very dangerous,” and despite Keene’s best efforts to denigrate Stockman’s “of course it’s a bubble,” perspective; the former inside-man exposes the hard mathematical truths of valuations, performance, and reality in this brief clip. Who is to blame – The Fed or Wall Street? “It is a question of who has taken whom hostage,” Stockman concludes ominously, “it’s a co-dependency… it’s very dangerous.”

“Wall street demands that the Fed keeps dishing out the liquidity, keeps dishing out the monetary heroin…

They have a hissy fit if the chairman of the Fed even suggested they might begin to taper four years into a recovery.

So – it’s a codependency.

It’s a very dangerous thing. “

Interview below:

1 thought on “David Stockman Rages Market “Valuation Has Lost Any Anchor To The Real World’ (Video)

  1. Codependency or collusion? I see it as criminal. The market is so rigged that it no longer reflects the real economy. There was a time one could examine the economy along with the market for a fairly clear idea of where the economy was heading. If printers were in demand, find a good paper stock for investment.
    No longer. Stockman is spot on.

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