I've pointed out many occasion in which Washington Post columnist Robert Samuelson has gotten things wrong, so I will give him credit for getting one right. He took issue yesterday with Nouriel Roubini's claims that the economy is facing renewed bubbles in stocks and commodities.
Samuelson looks to the fundamentals (what an extraordinary idea) and points out that stock and commodity prices don't seem especially high. He is right.
I should qualify this comment by noting that the recent run-up in the stock market may have been driven by some irrational exuberance about the strength of the recovery. That doesn't mean that stock prices are over-valued; the plunge earlier this year was driven by irrational pessimism, but there could well be some serious dips when Wall Street investors learn about the real strength of the economy.
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