To: Robert Graham who wrote (670 ) 4/26/1998 11:07:00 AM From: HeyRainier Read Replies (1) | Respond to
[ Comment on Market Analysis ]It was a Very Good Year: Extraordinary Moments in Stock Market History . It has to do with what you mentioned about the "liquidity driven market" that we are currently in. The quote is a forward-looking observation made from 1995:RT: he might have been thinking of a domestic one, but Asia might count ) reduces the price level to a secondary public policy consideration. As the Fed liquifies the system, the stock market quickly and radically adjusts to the changed circumstances. In their eagerness to prevent a meltdown, the monetary authorities unavoidably give stock investors a windfall .it must find an outlet . On several occasions during the twentieth century, capital markets have provided that outlet . In these situations, inflation has occurred in financial assets, rather than in goods and services. The phenomenon has been well documented by renowned interest rate observer James Grant, who credits the related theoretical insights to the so-called Austrian school of economics..."
