2018-01-21 07:25:00 Sun ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
As he refrains from using the memorable phrase *irrational exuberance* to assess bullish investor sentiments, former Fed chairman Alan Greenspan discerns asset bubbles in the American stock and bond markets in early-2018. Despite the recent healthy fundamental recalibration, Greenspan warn of high U.S. stock indices from Dow and S&P 500 to NASDAQ and Fortune 500. Also, Greenspan points out that the current government bond yields hover not far from historically low thresholds. The latter may transform into potential U.S. bond yield curve inversion, which often signals the early dawn of an economic recession. This inversion correctly predicts U.S. economic downturns in all decades after the 1960s. As the Federal Reserve gradually normalizes and tightens its core monetary policy, interest rates continue to raise the relative likelihood of bond yield curve inversion. Greenspan shares his ingenious insight that higher long-term government bond yields may determine the extent and duration of bullish investor sentiments during the current interest rate hike. Whether the Trump team addresses the fiscal gap with $2 trillion government expenditures and $1.5 trillion tax cuts depends on the future U.S. real GDP growth trajectory. The Trump administration expects 3%-3.5% real GDP economic growth for this self-finance to trickle down to the typical American. Greenspan's prescient comments warn of the current fiscal shortfall that may fuel U.S. debt escalation as a proportion of total real GDP.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2017-12-03 08:37:00 Sunday ET

Sean Parker, Napster founder and a former investor in Facebook, has become a "conscientious objector" on Facebook. Parker says Facebook explo
2027-07-31 13:25:00 Saturday ET

In the broader context of stablecoins for asset tokenization worldwide, many governments now seek to enter the global markets for stablecoins and other U.S.
2019-03-09 12:43:00 Saturday ET

Pinterest files a $12 billion IPO due in mid-2019. This tech unicorn allows users to pin-and-browse images through its social media app and website. Pintere
2019-10-01 11:33:00 Tuesday ET

The Trump administration postpones increasing 25% to 30% tariffs on $250 billion Chinese imports after China extends an olive branch to de-escalate Sino-Ame
2019-08-31 14:39:00 Saturday ET

AYA Analytica finbuzz podcast channel on YouTube August 2019 In this podcast, we discuss several topical issues as of August 2019: (1) Warren B
2018-09-07 07:33:00 Friday ET

The Economist re-evaluates the realistic scenario that the world has learned few lessons of the global financial crisis from 2008 to 2009 over the past deca