( This story is for CNBC Pro subscribers only ). Social Capital CEOÂ Chamath Palihapitiya said Wednesday that stock and bond markets are overvalued and don't reflect the damage being done to the broader economy. The outspoken venture capitalist, joining CNBC's " Halftime Report " after launching another special purpose acquisition company on the New York Stock Exchange, said the relatively calm moves in stocks in recent weeks didn't mean the market was more rational. "I don't understand particularly what's going on, and I think right now Wall Street is entirely divorced from Main Street," Palihapitiya said. Social Capital's new SPAC began trading under the ticker IPOC on Wednesday. These companies are investment vehicles designed to merge with large private companies, allowing them to become public while bypassing the traditional IPO process. The private market has taken a much harder hit from the economic slowdown, Palihapitiya said, leading to investment opportunities for funds like his. "In terms of dislocation, the private markets relative to the public markets are in a really bad situation. The prices are off anywhere from 30% to 50%. In the United States, those prices will probably recover a little bit faster. In Europe and in China, I think it's going to be a little bit more problematic," Palihapitiya said. Palihapitiya said two weeks ago that the U.S. should let airlines and other struggling companies go bankrupt instead of bailing them out. On Wednesday, he declined to say the same about Virgin Atlantic, an airline run by Richard Branson, who has partnered with Palihapitiya in the past. Branson said he needs a loan from the United Kingdom to keep the airline operational . "As a U.S. citizen, I told you what the U.S. should do. I cannot decide what the U.K. government should do ... I think Richard has a claim to make just like all the U.S. airlines had a claim to make, and then I think the government needs to decide," Palihapitiya said. He also defended his call to ban open market stock buybacks, saying they were, "the primary example of the growing strain of incompetence amongst CEOs and amongst boards." Watch the full interview above.
