Does being filled with money that would rather be elsewhere make today’s stock market a bubble about to burst?

A goodly number of financial eminences have certainly denied this.  But if the price of today’s stocks is grounded in realistic expectations of their dividend income, why does the Dow drop abruptly when the Chairman of the Federal Reserve Board merely hints that the Dow might be overly optimistic?  Could one small statement by Alan Greenspan really affect the actual profitability of so many companies—and do it so quickly?

Personally, I would rather not have to make my own call on the viability of the contemporary stock market.  I’d also rather not have to wonder whether a third party was calling it correctly.  It all seems too much like betting my retirement livelihood on a horse race.  And none of this leaves me feeling too thrilled with the prudence and responsibility shown by Wall Street, or by the corporations in whose shares the stock market deals.

How would the addition of Social Security affect this already less-than-stable state of affairs? 

Remember that the funds financing Social Security constitute a sum so vast that it makes nonsense of the most diligent attempts to balance our national budget, even in an era of reduced military needs, major trimmings of civilian agencies, and a drastic overhaul of our welfare system.  If being crowded with money that lacks alternatives makes today’s stock market in any way like a bubble, what would such an immense infusion of new funds produce?