perhaps we will have to see if that makes people feel richer dr bernanke you but we do sure know that the market has been addicted to easy money here's a chart if you need a reminder shows when the fed announced a stock program and the stare excuse me a program in the stock market went up then the market went down when it knew that that program was going to end until the fed announce something new or hinted at something new when you can see so those red marks are where the program would and that's when the market would start falling and and the bright green that's where you're seeing the fed starting those programs or announcing them now i spoke to earlier who told me the fed is saying without because it's not giving a time limit for when these programs will end it's saying you can't frank around us now and you can't discount us because we're not giving you a date and i spoke to mark far before the fed's decision he's founder of mark's father limited and author of the book tomorrow's gold and here was his warning for our audience. principle you called create prosperity by printing mon

the unemployment rate has returned close to its pre-recession level now this took me back to what dr bernanke you was saying before the housing crisis when asked about the idea that housing prices could decline nationwide or that the mortgage market was in a bubble take a listen to what is the worst case scenario if in fact we were to see prices come down substantially across the country well i guess i don't buy your premise it's a pretty unlikely possibility we've never had a decline in house prices without a nationwide nationwide basis. and the rest is history well known history and the past it turns out isn't a perfect roadmap for the future so with talk of expanding the fed's balance sheet even more with the assumption that inflation is low so the fed has room to print how tenable is that assumption and how do things like shadow banking liabilities factor into the question and i'll point out we do not have a roadmap for what happens when the fed unwinds a balance sheet that's ballooned from eight hundred sixty nine billion to more than two trillion dollars but here to maybe help us with h

dr. bernanke's playbook, things are in the early stages of a long run for financial asset ins europe. >> must have had too many glasses of cheap wine on the flight back from san francisco, scott. i thought i heard you say you're long european stocks. >> we have been for the last two months, brian, particularly italy, spain, and some germany. and it's turned out to be a fairly good trade. given what's going on, i think we have pretty good upside for those markets. >> italy, german, spanish -- whatever the best stock markets are that you just noted -- are those stock indexes? are they essentially the dow three and four years ago given their cycle? >> i absolutely think so. when you look at the multiples for these markets, brian, we're at the same multiples we were in the united states in march of '09. obviously, in march of '09 in the united states, earnings were very depressed in europe because of the depressed. europe has the advantage of not only being able to grow multiples, but also to be able to grow earnings. i think for the united states, while we've got room for multiple expansion

falling below about lying and dr cornel west and thomas smiley will be coming into the studio to discuss this disturbing trend. and without further ado fed chairman ben bernanke announces another round of quantitative easing this time the plan is to buy mortgage backed bonds to lower interest rates is this a last ditch attempt or a serious solution or a financial guru will break it all down for us. it's thursday september thirteenth eight pm here in washington d.c. i'm liz wahl and you're watching. a victory today for reporters and activists fighting the controversial indefinite detention law a federal judge has ruled that the government cannot enforce a provision that allows the military to detain those who support terrorists or associated forces now those two words associated forces are key that's with us the plaintiff in the case against the government a group of seven reporters and activists say they believe they may fall under this category by reporting on the middle east they say under the n.b.a. they could be indefinitely detained because their job sometimes require them to interact with terrorists well the judge granted a temporary and junction back i

bernanke's doing, he says i see that improving. i'm going to give that extra boost. keep those rates low a bit longer. i think that's going to carry us out of the -- >> dr. siegel, it's josh brown. i'm just curious. a lot of your work revolves around valuation. i know p.e. is not the end all, be all. but there have not been any other secular bear markets prior to this one where we've seen a bottom with a price to earnings multiple of 12 or 13. and i know you must look at the 10-year trailing and say, well, historically at 22 or 23 on a 10-year trailing basis, this has not been a great valuation to first buy in. how do you reconcile that with your bullish viewpoint? >> okay. i mean, two good points. first of all, in terms of, you know, bottoms of p.e. ratios, we've only seen ten and under when interest rates are double digit levels. i mean, that's -- that's a world where, hey, i'll take a 15%, 20% treasury. i'll sell stocks down to seven and eight times earnings. actually, my research, in fact, and others show that when interest rates are not at double digit levels we have an average p.e. ratio of 18 and 19. so it's those double digit interest rates and d