Janet Yellen declared during her press conference today that stocks are fairly valued and not in bubble territory. Do you remember Ben Bernanke’s words of wisdom from 2005 and 2006?

(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.”

(February 15, 2006) “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

I have a feeling we’ll look back on this day in a few years and realize Janet Yellen was either a fool or a liar. Or both. Her job is to lie on behalf of her employers – The Wall Street banking cabal. Never forget who she works for. It’s certainly not you.


“Presently the Stock Prices Regression to the Mean is at the 1929 Euphoric Exuberance level. It is imperative to notice S&P500 Regression to the Trend Mean peaked in 1901, 1929, 1966 and 2000. To be sure each peak was followed by material stock market corrections.”

Even assuming trailing earnings are valid, sustainable, and not goosed by the Fed itself (not to mention non-GAAP accounting gimmickry): the most recent median S&P 500 Price to Earnings ratio as of this moment is higher than 89% of all P/E prints in the history of the market. Said otherwise, equities have only been more expensive just about 10% in the history of the S&P.


  1. Stocks were up about 100 points today on the the Dow, Janet “Depends Pissing” Yellen must be right, fuck the dip, time to double down now!

  2. ‘Extraordinary Popular Delusions and the Madness of Crowds’

    (Page 15)
    “With a weakness most culpable, he lent his aid in inundating the country with paper money, which based upon no solid foundation, was sure to fall, sooner or later. The extraordinary present fortune dazzled his eyes, and prevented him from seeing the evil day that would burst over his head, when once, from any cause or the other, the alarm was sounded.”


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