The Oil Drum

232 comments on DrumBeat: October 27, 2006

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Darwinian on October 27, 2006 - 6:37pm

Elwoodelmore, no one said one damn thing about excess dollars chasing overpriced equities. An increase in money supply does not necessarly mean excess dollars. The money supply increases because people borrow more money. Banks lending more money is what causes an increase in money supply. You can have an increase in money supply without any inflation whatsoever, and without any overpriced overpriced equities whatsoever.

None of this has anything to do with p/e ratioes.

Please pay closer attention to what the thread is actually talking about before commenting.

Ron Patterson

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elwoodelmore on October 27, 2006 - 8:08pm

then what is your explaination of excess p/e ratios ?

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Darwinian on October 27, 2006 - 9:08pm

Well I could give you a short lesson on why some stocks have very low p/e ratios and some have have high p/e ratios, and why they sometimes get very high. But since this original thread had absolutely nothing to do with p/e ratios, you were the only one to bring it up, I see no need to discuss p/e ratios any further.

But if you have any question or comments about peak oil or related subjects, then let us hear them.

Ron Patterson