Speaking from Philadelphia, he had great comments on:
- Bank regulation, Glass-Steagall act
- Canadian banks, tougher capital rules, more capital to improve balance sheet
- On eliminating bank proprietary trading: very difficult to implement as banks are too creative to find loopholes around it
- Are S&P500 P/Es too high? That's not the way he sees it. He looks at yields, which are around 2%, and not too high. he says that returns over 40 years are good (I disagree here, this is pointless for most common people who undergo life changes, marry, have kids, kids go to university, they cannot invest for 40 years, as Danielle Park mentioned in her great book.)
- Blasts rating agencies for the crisis, and many other people: security analysts, pension managers who should have been looking at balance sheets. They did not do their job.
- US does need more taxes (and he makes sense), the anti-tea party! We cannot deal with these deficits. Need a combination of expense reduction and tax raises.- On Gold: not a good investment, pays no yields, has gone nowhere in 200 years.
Watch part I
Watch part II
Watch part III