On the Credit Bubble

“Enjoy it while it lasts”
Alan Greenspan commenting on the global liquidity boom which he traced back to the end of the Cold War.

“Some of these price/earnings ratios are discounting nirvana… it cannot continue indefinitely”
Greenspan on the current growth rate of China and the Third World

Al (doesn’t he suddenly sounds so comprehensible?) also mentioned that a withdrawal of China from U.S. bonds was unlikely since they would not have anyone to sell the securities to. Oh yeah, the bondholders felt just great after this one.

Meanwhile, gold is reported acting strange with mysterious 200-lot selling throughout the day (NY hours of course). The 10-year treasury notes hit 5.25% a five year high (is the inverted yield curve flattening?) and Oil seems to be clinching past $65, albeit with some difficulty.

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