Thursday, August 20, 2015

Greenspan warns about bond-market bubble.......A MUST READ!

Greenspan warns about bond-market bubble

Former Federal Reserve Chairman Alan Greenspan is sounding the alarm about a bubble that he believes is forming in the bond market.  IT IS FULLY FORMED AND READY TO POP!

In two television interviews in recent days, Greenspan said interest rates could shoot higher and derail the economy when the bubble bursts.  NO KIDDING!

The former Fed chairman says the current situation in the bond market is comparable to what happens in the stock market during an equity bubble.  THANKS FOR THAT BRILLIANT INSIGHT!

Noting that stock-market bubbles are typically characterized by extreme price-to-earnings ratios, Greenspan said extremely low yields are telling a similar tale for bonds. MR. MAGOO STATES THE OBVIOUS.

"If you turn the bond market around and you look at the price of bonds relative to the interest received by those bonds, that looks very much like the usual spread which would concern us if it were equities, and we should be concerned," Greenspan said in an interview with Fox Business Network.  YES WE SHOULD ALL BE VERY CONCERNED! ABOUT BONDS AND ABOUT THE FACT THAT WE EVER LET DISINGENUOUS IDIOTS LIKE THIS NEAR OUR ECONOMY!

In an earlier interview with Bloomberg Television, Greenspan said it was appropriate to be very afraid of the bubble. He said the bond market price-to-earnings ratio was at an "extraordinary unstable position."  THE SAD FACT IS THAT IF HE WERE STILL IN CHARGE HE WOULD BE SAYING EXACTLY THE OPPOSITE THING. IN OTHER WORDS OFFICIAL LIES TO MAINTAIN THE ILLUSION.

Greenspan said "normal" interest rates have always been in the 4% to 5% range.

Yields on the 10-year Treasury have been below 4% since the summer of 2008. 

"We have pressed the interest rates well below normal for a protracted period of time and the danger is they will come up to back up to where they have always been," the former Fed chairman said.  BOY, ISN'T HE SMART!

"There are two possibilities. Either we move slowly back to normal, or we do it in a fairly aggressive manner. History tells us it's the latter which tends to be more prevalent than the former," Greenspan said.  HISTORY TELLS ME YOUR A DISINGENUOUS, LYING, FOUR EYED WEASEL THAT ONLY SAYS WHAT BENEFITS YOU THE MOST! OTHER THAN THAT,HE IS RIGHT THIS TIME,BUT ONLY BECAUSE HE WANTS TO GO ON RECORD AS WARNING PRIOR TO THE COMING COLLAPSE,TO SAVE HIS REPUTATION, OR WHAT IS LEFT OF IT. THE FACT IS HE IS THE FATHER OF WHAT IS HAPPENING AS WELL AS ALL THE BULLSHIT GOING ON AT THE FED. HE IS A VERY EVIL HUMAN BEING.

The market impact will be "not good," he said.

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