While some financial commentators have expressed concern that the stock and housing markets have entered bubbles, Harvard economist Larry Summers disagrees.
"There's no question that assets are more fully priced than they were 18 months ago," the former Treasury secretary told CNBC.
"But it seems to me that if you look for the kind of indicators that were prevalent in 1999 and 2000 in the stock market, or the kind of indicators that were prevalent in the housing market in 2006, I don't see them there."
The S&P 500 has almost tripled from its March 2009 low, and the S&P/Case-Shiller 20-City Home Price Index of has increased an average of 6.8 percent annually over the past three years.
Some commentators also argue that the Federal Reserve has exacerbated income inequality, as its easing has pushed financial-asset prices higher, and it's mostly the wealthy that hold those assets.
Again Summers disagrees. That idea isn't "remotely plausible," he said. "A strong economy is the best thing for people who have been left behind."
The economy grew 4.6 percent in the second quarter.
As for the bubble believers, Thomas Kee, CEO of Stock Traders Daily, is one of them. "Is the stock market in a bubble?" Kee writes on MarketWatch.
"Yes, absolutely. It is not the only asset class that is in a bubble. Real estate is also in a bubble, and these prices have absolutely been influenced by [Fed] policy."
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