<Valuation is nowhere as a determinant of market levels.> You do realize you are repeating verbatim what was said over and over and over and over to justify the last bubblerun. We will have the exactly same market response to that once again "POPULAR" view. It took ONLY 3 years for many to fall right back on the pre-Bubble cliches. Incredible.
Didn't Milton Friedman, the father of monetarism, disavow the correlation between liquidity and economic activity recently. Perhaps a critical analysis of the monetarist doctrine would be necessary in order to conclude whether or not the FED can successfully revive the economy through liquidity operations at all. I don't know, but I think demand for money has to be there and can't necessarily be taken as a given. At a certain point, money becomes an 'inferior good'. Probably around the point at which FED governors are throwing it at businessmen who would really just like the FED to send over a customer or two, rather than give them a cheap loan.<g>
The economic quote of the month - and probably the decade - is that Milton Friedman now admits: 'The use of quantity of money as a target has not been a success.' He added: 'I'm not sure I would as of today push it as hard as I once did.' (FT, 7 June 2003).
Market Data 
Markets 
AI
