Warning from Greenspan: Interest Rate Spikes Can Happen

Posted on June 19th, 2010 by admin in Political Economy

Alan Greenspan, writing in the Wall St. Journal (Friday, 18 JUNE 10, 90 day link ), wrote

I grant that low long-term interest rates could continue for months, or even well into next year. But just as easily, long-term rate increases can emerge with unexpected suddenness. Between early October 1979 and late February 1980, for example, the yield on the 10-year note rose almost four percentage points.

He generally warned us that

The United States, and most of the rest of the developed world, is in need of a tectonic shift in fiscal policy. Incremental change will not be adequate.

Do you believe the curent regime has any political courage, let alone sufficient to change course?

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