Retired central banker, blogger, bond guru and hedge fund consultant Ben Bernanke just uttered the following total rubbish...
- *BERNANKE: NO LARGE MISPRICINGS IN U.S. SECURITIES, ASSET PRICES
In an effort to save whoever it is that will pay him $250,000 next for these wise words, we offer five charts.
One of these things is not like the others...
[5]
nope, no mispricing there at all...
[6]
Almost imperceptible amount of mispricing here...
[7]
So now "relative" mispriings at all..
How about "absolute" mispricings?
Cyclically, even Yellen thinks stocks are expensive...
[8]
and the median stock has never been more expensive...
[9]
But apart from that - nope - no mispricing whatsoever.
* * *
Which is why it seems odd that Bernanke would conclude his speech with this statement:
- *BERNANKE: HOW TO MANAGE ASSET PRICE DROP SCENARIO MORE CRUCIAL
Why would asset prices drop if they are not mispriced?
