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Cool, tell that to Alan Greenspan. I wonder where that perceived value comes from?

• supermatt 5y ago
  > Cool, tell that to Alan Greenspan. Your word salad is your own, not Greenspans. > I wonder where that perceived value comes from? I believe that is the holy grail of investment. There are many different models that try to approximate it.
  • thoughtstheseus 5y ago
    No worries, if you have a question on something just ask. Greenspan popularized the view that excess capital flowing into stocks can be viewed as a form of inflation. There are limits (not strict) on short-term consumption so excess capital needs to go somewhere. Some of it goes into stocks until used for future consumption.
    • supermatt 5y ago
      You are misrepresenting whatever it is you think he has said. Greenspan has never said that "excess capital flowing into stocks can be viewed as a form of inflation". Higher price of stock being a potential indicator of inflation (due to the wealth effect, etc) is very different to it "being a form of inflation". Anyway, I don't care to continue this discussion as is. Please feel free to post references backing your redefinition of economic terms if you wish to proceed.
      • thoughtstheseus 5y ago
        Please don't post shallow dismissals. A good critical comment teaches us something.