Thomas Oliphant, who you may remember as the guy who ocassionally substitutes for Mark Shields on PBS on Friday nights, has written an article called "Greenspan's dilemma," in the Boston Globe.
In it, he talks about the "inverted yield curve" that I wrote of earlier, and describes why the curve and the high levels of consumer debt for all Americans spell trouble on the horizon. Click on the post for the article.
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Good article, I am sure I agree with all of it though.
ReplyDeleteI would like to see some opinions regarding the competion between banks. I think that the still falling interest rates are due to the competiveness between banks.
If you link the bank rate issue with the low unmeployment you should come up with more people who qualify for higher mortgages.
Greenspan may have not taken into account that banks, like retail could hold a loss leader. So you get the customer in the door with allow interest rate on a mortgage then make them move their accounts.