pleased to have jeremy grantham back at the table. welcome. >> nice to be here. >> rose: why does this time seem very, very different? >> well, i am actually hard pressed to find anything that isn't different, but to start with the basics, the price earnings ratio of the market of the last 20 years has been 70% higher than the previous 100 years. this is not a small number. this is not 15%. the profit margins of u.s. corporations have been 30% higher in the last 20 years. so you've had really profound shifts. i think also the style of corporate management. 30 years ago, they used to think about expansion, the market for paper would get a little tight and they'd start to open new mills. now they think about profit margins more than expansion, and they use extra money to buy stock back. it works out very well for corporate offices, tends to push the price of the stock up a little bit, tends to be a little bad for a g.d.p. growth, a little bad for jobs. but for the corporation itself, it works pretty well, and for the stockholders. >> ro

i am pleased to have jeremy grantham back at this table. jeremy: nice to be here.why does this time seemed very, very different? jeremy: well i am actually hard-pressed to find anything that isn't different. to start with the basics, the price-to-earnings ratio at the markets in the last two years has been -- 20 years has been 20% higher than the last 100 years. higherphet has been 30% at corporations -- profit at corporations have been 30% higher. you have corporate management. 30 years ago, i used to think about expansion -- they used to think about expansion. the market would get tied, they would open new mills. now they think about profit margin more than expansion. they use the extra money to buy stock back. it works out well for corporate offices and to push the price of the stock of a little bit. it tends to be a little bad for gdp growth, bad for jobs, good for the corporation itself. it works pretty well, and for the stockholder. charlie: is it good for the economy? jeremy: a little bit week for bad.conomy, a little bit it doesn't generate any extra jobs.