betty: what the schiller say of this?e talked to bloomberg radio and he said, the ratio is above average. it is one of the highest ever. the real wild is the perpetual low interest rates that are spring up a lot of these financial models. people, believe they are tied to interest rates. as they go up, you will say a premium for stocks. and hesitatessays to tell people to get out of the market. betty: that is that caveat. mike: people have been afraid to spend above average for timeout. it has been flashing the danger sign for a wild. he is a little wary of interpreting it as a sell signal. betty: at every data point, you have to put it all in context. it is not so black and white here. very interesting. thecan read his story in july-august special rivalry issue of "bloomberg markets" magazine. much more ahead. the nba draft -- which teams got better, which disappointed, and why were knicks fans booing? .e will break it down ♪ betty: welcome back. i'm betty liu. this year's nba draft is in the books. it happened last night

. >>> today, wendy schiller sis the prestigious schools where three of the students will be headed this fall. >>> antonio gonzalez lives in head with -- had with his grandmother in richmond along with 16 other people. he shares a bedroom with his mother and sister. >> 17 people in one house is pretty hard to -- sometimes there's -- nothing to eat. >> for a serious a student with a 4.0 gpa, that's another problem. >> finding a quiet place to study. antonio has to wait until his mother and sister are asleep. and then he uses the flashlight app on his phone to study. >> those late nights will pay off this fall one antonio goes to uc davis. >> on a saturday morning. dennis lopez's busy to helping a man -- a mom clean of clients phone, the mom has multiple -- a single mom, she has to work even if she is in pain. >> charisse helps out, she works in the summer -- the summers while edit tutoring center. >> jerry being able to work means not only will she be able to take the bus to school she will be able to put food on the table. >> charisse mom has had it had other health problems, appendiciti

danielle: schiller's tenure paper valuation metric.rket valuation overall compared to gp. -- gdp. the valuation measure is more overextended than it has been at any other point since the 1990's. brendan: you have to stand outside the door and wait for them to throw you table scraps. mike: spent a lot of time outside the door. brendan: now that you were out, what can you tell us? how are these decisions made? danielle: i never sat around the table itself. what i can tell you is from the perspective of somebody who looked at the world through the prism of the financial markets come i don't think they are given enough credence in the decision-making progress. fisher was one to always bring the subject of financial stability to the table. his background differs from many of the decision-makers. brendan: of all the criticisms i've heard about the fed system the one that makes the most sense to me is that there are too many economists as fed president as opposed to other types of people. danielle: 30 to be more people who understand the fina

we will hear from nobel laureate robert schiller about the state of the u.s. housing market.rice of cocoa is headed higher, so you'd that are stock up on those new chocolate bars now. good afternoon from bloomberg world headquarters in new york. this is "market day." let's get straight to the markets right now. we did not extend yesterday selloff, which was the biggest and more than a year. we're looking at modest rebounds

we will hear from nobel laureate robert schiller about the state of the u.s. housing market. mark: the price of cocoa is headed higher, so you'd that are stock up on those new chocolate bars now. good afternoon from bloomberg world headquarters in new york. this is "market day." let's get straight to the markets right now. we did not extend yesterday selloff, which was the biggest and more than a year. we're looking at modest rebounds , but unless the s&p closes point 89 -- it looks like we are at the level right now -- it may and nine straight quarters of gains, but we will see how it all plays out in the last hour of trading. keep an eye on the euro -- weaker impaired to the dollar. not off by much. let me rephrase that -- off by .7% compared to the dollar after yesterday's remarkable turnaround in which it strengthened. people are still not clear what drove the turnaround. --ally, let's look at bonds mixed on the day, but treasuries are set to post a decline for the quarter. the 10-year yield moving up marginally. mark: let's take a look at some of the top stories crossing

you can see these guys pulling hoses on the 600 block of schiller street. all that smoke there. firefighter did end up in the hospital from minor injuries and we still don't know yet how that fire started. >>> powerful campaign to help first responders overseas. delaware county firefighter personally organizing a movement to help firefighters in his native country. his initial fundraising efforts left him short of his goal. >> fire departments from across our area are stepping up to save lives on the other side of the world. fox 29's shawnette wilson is live in collingdale and shawnette, the key here is about giving new life to old equipment equipment. >> reporter: it is. some of it is old but some of it actually comes from fire officials who respond to a scene but don't go inside burning buildings. so that equipment would be fairly new. all of this is helping a collingdale firefighter help his brotherhood in need. trying to save others when they can't save themselves. >> reporter: this video posted on youtube shows dilapidateed fire nouse see year leone firefighters sleep on th

while yale's schiller believes there is a bubble element in the current climate, or to siegel takes theite view, confident that it will continue the run. erik schatzker and stephanie ruhle spoke with him earlier this morning in order to find out more. i agreed that the current valuation of the market measured by the standard price-to-earnings ratio is a little bit higher than the historical average, i think a higher p/e ratio is fully justified in a world of record low interest rates. even when the fed raises them, they are going to still remain low on his -- on historical standard. in my estimation and my colleagues at wharton, a lower discount rate means a higher average valuation or the stock market, so i certainly do not believe that it is overvalued at current levels. erik: professor siegel, that is a key point. where do you think funds are going to peak once the federal reserve is that the apex of the tightening cycle? professor siegel: my belief is -- and here, one of the rare times when i agree with bill gross, we have disagreed a lot about the stock market over the last five ye

firefighters say when they rolled up to the home on the 600 block of schiller street flames were alreadyhooting out about 3:00 their this afternoon. you can see all of this heavy smoke there. one firefighter ended up in the hospital from minor injuries. don't know yet how that fire star. >> dramatic video caught on police car dash cam in texas it shows a county sheriffs deputy helping fellow officers stop that man who attacked the dallas police headquarters last weekend weekend. that brave deputy had not even been on the job that long. >> she says she knew this day would be a little different thanks to a dream she had the night before. tonight she's talking about that with fox's sean rob. >> right before i came on friday wednesday and thursday i had these bad dreams about people shooting at me. >> sheriffs deputy katrina caldwell dream prem know mission the attack on dallas police. >> when i read and heard what was going on i took off turned around in saint augustine. gunned it down here and stopped right back over here. >> reporter: on the street just over a year, she stopped her squad

schiller they are squaring off. there is a historical outlook.on and the confidence and the bubble that is out there. let's go to tony dwyer. academics love to do this. they love to talk about a bigger, potter theme, -- broader theme. is this an after-the-fact discussion? tony dwyer: it has to be. how could you be in a bubble as alan greenspan found out. he knew it, but it did not matter. tom keene: by definition, a moving average is an after-the-fact look at a market. it's no different than what persists or -- professor shiller is doing. tony dwyer: if you look at the trend of valuations, it's up. it doesn't matter if it's two times or if it should be. you would not fight that trend. tom keene: this goes back to the heart of the matter, the guys in the trenches and the academics look at the bigger picture. brendan greeley: that's what i'm learning to do on the show. i started writing about academics and talking to the. i discovered they don't matter. we have dr. alvin roth right here with us. every time we talk about robert shiller when you get

erik: i was the game or the like pe, adjusted pe schiller pe.lot of talk, but it's so overvalued on that. it is looking at 10 years. if i could be like the way i was 10 years ago, i would want to be that way, too. as time goes on, things change. we don't have to focus on that. the average market valuation averages 16 times earnings. we are treading about that now. it is not egregiously above average. olivia: paul hickey, thank you so much. erik: when we come back, you're going to hear from saudi prince alawaeed, 20th century fox and twitter investor. a great conversation along the way. 15. -- stay tuned. ♪ erik: he is one of the world's greatest investor, billionaire saudi prince alawite -- our lead. -- prince i will lead them to love. al-waleed bin talal. he is on the phone from the saudi desert. your highness, thank you for taking time for us on your weekend. let us start with fox. you have long been an investor and supporter of the murdochs alan nunnelee -- murdoch family and the first public the -- supporter of james as a successor. prince a

do you feel you have to have the humility that schiller would have?eve that anybody would care about 25 basis points in a three-month time difference. richard: we need to be humble. in the monetary history, when it is written in the 50 years of this decade, no one will care that it is september versus december or january. or 25 then versus 52 months later. vonnie: are we little bit bemused that janet yellen has no reaction to what christine lagarde said yesterday? richard: she had a panel month ago where she and janet yellen were on the stage, and it was a little bit unusual because christine lagarde had the chance to lecture her in person and she chose not to. tom: i could see the phone call. a little busy right now, but she wanted me to call. this is unprecedented. my take on this, how does the fed respond to these kind words of the imf? richard: there will be a press conference in two weeks. mike will ask, and she will have a chance to comment, and i am sure she will have a very scripted 52nd soundbite. brendan: it is jobs day. when will rages -- w

speaking earlier on squawk box europe robert schiller was asked if he sees a recovery playing out stateere are places in the united states that are really in bubble territory. for example, san francisco, it is hot, hot, hot. they are going way over the asking price. every house sells quickly. it looks like a boom. but san francisco is a city which has a history of booms. they seem to be certain boomy places and california is booming. why is that? you have to go there and live for -- they have a high strung mentality. it's a sense of their own importance. i shouldn't say this. i'm not a californian, and london has the same problem, by the way. >> chinese markets closed over 4% higher. official pmi edged up 6% in may. meanwhile, china's once resilient services sector showed signs of cooling with pmi slipping to a five-year low. all of this amid hopes of a further stimulus from beijing. >>> investor interest in chinese ipos continues to surge with shares in hutai raising more than 7%. the company is the fourth largest brokerage and is represents the second largest ipo this year. it also ha

a broader shoulders shoulders broad enough to not only bear crown prince of the burdens dollars schiller'simated his life. to no joke unless a buyer and family misunderstand why he lives like you did. r cole atlas aphakia more like. car accident that took is thomas sister. then confined still others a christmastime. but to alert early the but a family role as fifth ask for help with its to late. but you're never long to even have asked someone is always there for you. so after the accident there are chang care for the boys bearing help raise them. the continued public service but shunned parlor games a washington. choosing instead the decree home. maintained for decades. the lme is his most cherished duty. to see his kids off to school. to let them know that the world. was world there was firm ground under their feet. as professor may. he did not just do this because the kidney >> marty: piously is behind a wife and two children president of thomas talking about bias' life as a public servant was recently as the attorney general of delaware biden also served in the military. autobio was 46

dagen: on schiller said not long ago that this time is on my cube in 1929 because you have stock bondsand real estate. arguably overvalued. he didn't say this, but it is like driving an old truck down a dirt road at night with the light off. it is very bumpy, increasingly volatile and you have no idea where you're going. did anybody ask about? i notice their job their job to pick stocks. was there a concern about multiple asset classes being overvalued? >> i don't think they are overvalued. they are fully valued. it is clear they mostly think the feds will move in the fall and september. there is a sense of waiting now. maria: you have a story about yields a 12%. where do you get it? >> here is the deal. you can buy the bonds in the stock market. it was so freaked out about rates going up a lot. the discounts are low. if you buy them now you can get a 12% return after tax. you can get 7% in whatever bracket pretax. that is a high yield for bonds. you buy clothes bond funds and we are writing about that this weekend. but we think they are overly discounted because we don't see rates jum