Bogle on Obama, Geithner, stocks vs bonds

Retired Vanguard Group founder John Bogle spoke for law firm Stradley Ronon at the Comcast Center last Thursday. Lively Q&A at the end:

How long will the excruciating slowdown last? "A year and a half, two years."

Does he approve of President Obama, and his stimulus package? Yes, though it's "far from perfect."

Treasury Secretary Tim Geithner's new bank bailouts? Also yes, though "a lot of banks will have to be liquidated."

Do we face huge inflation when the economy revives? Yes, since "Congress does not have the courage to raise taxes."

Will bonds keep outperforming stocks? Maybe not: Bond prices are already high; given bond and dividend yields, "stocks should do 300 or 400 basis points better than bonds." More in yesterday's print Philly Deals, second item