Buying or Owning Stocks Is Now Dangerous: Stockman

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Dec. 9 (Bloomberg) -- David Stockman, former director of Office of Management and Budget, explains why he believes there is a bubble in the equity market on Bloomberg Television’s “Bloomberg Surveillance.”

Life games?

I think this is meaningless basically.

It's the kind of speck lative froth you get at the top of a cycle where valuation loses any anchor in the real world and in earnings and in the prospects of the economy.

Take the russell 2000. that's main street company, small, mid camp.

85 times trailing reported earnings.

That makes no sense.

So any equity markets is above?

Of course.

Of course it's a bubble.

It's grossly overvalued.

You would not own stocks right now?

I think it would be dangerous to own or buy stocks.

The 500 is trading at 19 times trailing earnings reported through the third quarter.

In the last two years the s and p is up.

The reported earnings are up 5%. when we come back -- we have expansion driven by the liquidity injection.

So who is to blame the fed or wall street?

Wall street is just a player.

The fed is the one who sets the game and they're the ones who have accommodated monltry policy have hooked these brothers up.

It is a question of who has taken whom hostage.

Wall street demands that the fed keeps dishing out the liquidity, keeps dishing out the monetary heroin as i call it.

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

So the question is -- it's a codependency.

It's a very dangerous thing.

Good morning, everyone.

All of our interviews are available on media.

David stockmap with an interesting controversial book this year on the fed.

He has been more than critical.

We're back with jessica brondo founder and ceo with admittedly.

Previously she was founder and ceo of the edge in college prep.

This is the time of year when students, high school seniors are getting some of their responses back from colleges or beginning to apply for college.

You've described your company as game if iing the process through algorithms.

Can you demystify the college application process?

Is it metically driven on their

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