all the word on wall street, here with the scoop is "wall street journal" columnist gregory zuckerman, gregory, thanks for joining us. >> great to be here. lori: i blame "the wall street journal" for the selloff because you guys published an article last week pointing that the s&p 500 is overvalued. forward pe metric to determine valuation is over at a four-year high, what do you think? >> yes, we did note things are expensive. if you talk to the average trader on wall street, hedge fund guy, they are invested in the market but they're nervous. they have been that way for last six months to a year. in other words, they don't want to be in bonds. they want to be in cash. they feel pressure to be invested in the market but don't really believe in the market. don't believe in the economy. i frankly am a little more bullish on the economy than a lot of trader types. any excuse to sell they're running for the exits. lori: i think that was that article, the excuse to sell, because the conditions you describe have been around for a long time and this discussion of the federal reserve and whe

gregory zuckerman from the "wall street journal" here.mist, harry dent and all-star economist, peter morici is here. welcome, gentleman. >> i just lost. melissa: uh-oh. we'll get that fixed. greg, let me start with you. this is the new normal. we'll not bitch about it. it is what it is, 2.5%. yea. maul business opt system up. in this -- small business optimism is up. how do you set yourself up to make money? do you start a business? what do you think? >> i'm a big win believer in america. if you travel to the heartland of america away from the coasts you see real strength in housing and energy worlds. so i would focus on domestic stocks. i wouldn't get involved in emerging markets for six months to a year. and i'm pretty excited about some areas of energy and in housing. melissa: harry, are you with us? can you hear us. >> keeps cutting out on audio. melissa: let's give it a shot before it gets worse. what do you think about all that? i mean would you get involved in stocks right now? i worry that stocks have all this false promise built

here with the word on wall street, emac and wall street reporter gregory zuckerman. juicy details. so what is one fact they overlooked that could be a game-changer, greg? >> to me the fact that john paulson was not a big name when this deal was put together. in other words the argument is, the investor, this aca, should have been told that john paulson worked or his point man, his point person worked on putting this deal together and they were shorting this deal. to me it should have made a difference. wasn't a big name back then. they would have probably done the deal anyway. melissa: how does everyone feel about the fact this happened? what does it change going forward? what is the gossip? >> the big problem with the sec's enforcement being the market cop there has been nobody put in jail because of financial collapse, because of derivatives built on rotten subprime loans. the thing is -- melissa: does anybody deserve to be in jail for that? >> yeah, because there was huge amount of greed and accounting fraud. i'll tell you something, this is the biggest accounting