But will US markets still warrant a P/E of roughly 2x's DM or EM PEs under institutions that encourage rather than minimize rent seeking? And if not will the adjustment be fast or slow?
Didn’t Romer and Romer find that Fed inflation forecasts were superior to commercial? I know this isn’t exactly his point – hard to know what his point is -but still.
Similarly, if this gang thinks defense firms need capital, they could just buy a defense ETF. The spectacular outperformance of these vehicles however suggests that the private sector is meeting this need just fine thank you. But of course this is about total control, not remedying a mkt failure.
