Re: Re pension funds

["James R. Olson, jr." <jhavok@xxxxxxxx>]

At 12:33 AM 10/3/97 +0000, Oliver Kamm wrote:
>James R. Olson, jr. wrote:
>
>>
>>  The stock market is already inflated, what would pouring all
>> the money going into SS into it do?
>>
>> This may be a secret agenda of those pressing for privatization of SS, a
>> source of new funds to keep the current bull market alive.
>
>If this is a secret agenda, it's a misguided one. Stock prices, unlike
other prices
>in basic microeconomic theory, are not determined by shifts in supply and
demand
>curves. They're set by, and only by, investor expectations for the
fundamentals
>that determine the net present value of a future stream of cash flows.

This is an interesting theory.  How does it explain current price/earnings
ratios?