Quote:
Originally posted by sgtclub
My assumption would be the former [increased stock prices as a result of more dollars chasing a static number of shares], although the availability of new capital and cheaper equity financing would increase new issues from today's rate.
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The problem with "wealth" created by a surp;us of dollars chasing a fixed amount of capital, is that it creates a bubble. The bubble is inevitably followed by a vacuum. Witness the tech bubble.
