Harvard’s Feldstein: ‘More Air Is Going to Come Out of the Stock Market’

“Two weeks ago, Harvard economist Martin Feldstein said stocks are in a bubble, and now he maintains that the bubble hasn’t fully burst.

The Federal Reserve’s accommodative monetary policy has kept long-term interest rates near record lows, fueling the bubble, Feldstein tells Yahoo.

Already, “a lot of air has come out of the stock market,” he says, with the Standard & Poor’s 500 Index falling 5 percent since Feldstein’s earlier pronouncement.”

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