Glassman and Hassett, the authors of Dow 36000 claim that they were right all along, and get slammed by Brad DeLong.
I reviewed this book not long after it came out, and will post a link soon.
Glassman and Hassett are clearly fudging a bit, but I think Brad is a bit hard on them. They haven’t really retreated from their claim that the risk premium for equity will disappear in the near future, even if they’ve pushed the date out a bit. And they are quite right to say that the disappearance of the risk premium would undermine the case for the government as the ultimate risk manager.
Conversely, of course, any evidence that the risk premium is alive and well strengthens the case for government intervention, a point which I’m sure Glassman and Hassett would readily concede .