[lbo-talk] stock valuation without dividends

[Jim Devine]

> >>Isn't this what Marx said about interest rates (C III)? Unlike
> >>commodities (in Marx's TOV) the price of money is determined only by
> >>supply and demand, and can fluxtuate without limit.
> >
> >Yup. Or as an old friend of mine who handled investments for a large
> >insurance company was told by his chief investment officer back in
> >the late 1980s, "There's no value. There's only supply and demand."

Though he rejected the idea of a "natural rate of interest" (which
would be determined by the labor-value of loanable money-capital or
rather its price of production), I don't think that Marx saw interest
rates fluctuating "without limit". He discusses how the profit rate
sets an upper limit, while zero would be the lower limit for nominal
rates.
-- 
Jim Devine
"Economics is extremely useful as a form of employment for
economists." -- John Kenneth Galbraith