Stack says that many analyses of the market, like Gross', fail to account for the effect of short-term interest rates just above 1%, which he believes make current valuations tenable.

FORBES: Magazine Article

And analyses of that hike seem to suggest that while it had a big short-term effect on revenues, there is little evidence of large, permanent damage to incentives.

ECONOMIST: The economy: the solutions

In a new National Bureau of Economic Research paper, the three economists argue that earlier analyses overstate the wealth effect because they do not account for the fact that people who expect to earn more in the future may bid up house prices.

ECONOMIST: House prices and the wealth effect