Re: Is Bernanke Behind The Rallies? Query to Barkley

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Yes, but a cheapening dollar will do the opposite.

On Thu, Jun 19, 2003 at 10:23:58AM -0700, Niggle, Christopher wrote:
> Barkley: Is your point that the cheaper dollar makes investing in US stocks
> attractive?  I notice that most of the inflows into stocks and stock funds
> seem to be foreign. But wouldn't foreign investors worry that the dollar
> will continue to fall, reducing the expected return on US stocks in their
> own currencies?  I'm not sure how this works.
>
> chris
>
> -----Original Message-----
> From: Barkley Rosser
> To: Gary Santos; TheNewForum@xxxxxxxxxxxxxxx; pkt@xxxxxxxxxxxxxxxx
> Sent: 6/18/03 1:39 PM
> Subject: Re: Is Bernanke Behind The Rallies?
> Importance: Low
>
>     It should be kept in mind that the rise of the
> stock markets in the US has barely kept pace
> with the decline of the value of the dollar against
> the euro.
> Barkley Rosser
> ----- Original Message -----
> From: "Gary Santos" <evs@xxxxxxxxxxxx>
> To: <TheNewForum@xxxxxxxxxxxxxxx>; <pkt@xxxxxxxxxxxxxxxx>
> Sent: Tuesday, June 17, 2003 3:26 AM
> Subject: Is Bernanke Behind The Rallies?
>
>
> > I've been watching all the markets rally. I wonder if Bernanke's hint
> of
> > extraordinary measures to liquefy the markets (in this case the stock
> > market) in his November, 2002 speech is behind these rallies. I don't
> see
> > any fundamentals to justify the size of this rally.
> >
> > In my market, money is being placed back in the hands of consumers.
> Foreign
> > funds account for 3/4 of the volume. Certainly, this is money to spend
> ...
> > or to save. The central bank is offering a 10% tax free 5 year bond --
> about
> > 70% above the short term rate. I wonder.
> >
> >

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx