Connect with us

Hi, what are you looking for?

Jewish Business News

World News

Feldstein and Rubin Are Late to the Bubble Spotting Party



wal street bubble yy

Martin Feldstein and Bob Rubin see bubbles in the economy, or so they warned in their joint op-ed piece for the Wall Street Journal. However, both are in the habit of spotting bubbles late.

Fed Chief Janet Yellen warned last month in her statement before Congress that some biotech and small tech stocks were overvalued, but some Wall Street traders said it wasn’t the Fed Chief’s place to start analyzing stocks. Well, in a sense, the critics are right. It seems that the stock market is not reflecting the state of the economy as the Dow Jones is robust but general economic recovery is still slow. Employment numbers are rising, but not to expected levels, wages are stagnant and participation in the workforce is at its lowest since the late 1970s, which is a sign many American would-be workers have simply given up.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

The question many are asking is where were Feldstein and Rubin when the housing bubble was rising in clear view of everyone, as mortgages were being thrown at the crowd like candy at a 4th of July parade and housing prices were reaching hyperbolic levels? Martin Feldstein, who was head of the Council of Economic Advisors under Reagan, and Bob Rubin, who served as Secretary of the Treasury in 1995-1998, in the period leading up to the bust of 2008, were probably doing more than a bit to inflate the bubble of yesteryear. While the housing bubble was growing, Feldstein was at AIG and Rubin was taking care of business at Citigroup, so who were they to complain then about mortgage frenzy and inflated housing prices?

Since the realities of the economy are at least somewhat detached from the bull market, it is likely that a popping bubble will hurt mainly those who are invested in stocks, and not the average American, who is more likely to fear having his or her job cut in the name of “streamlining operations” so those companies can beat analysts earnings estimates, see a rise in their stock prices, and please shareholders.

Is there a bubble? Perhaps. But Janet Yellen said so a month ago, and few cared, just as some pumped air into the hyperactive housing bubble that burst into the Great Recession.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.