Former Fed Chair Alan Greenspan discerns asset bubbles in the American stock and bond markets in early-2018.

Jonah Whanau

2018-01-21 07:25:00 Sun ET

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.

Blog+More

Ivanka Trump and Treasury Secretary Steven Mnuchin press the case for GOP tax legislation.

Jonah Whanau

2017-10-15 07:38:00 Sunday ET

Ivanka Trump and Treasury Secretary Steven Mnuchin press the case for GOP tax legislation.

Ivanka Trump and Treasury Secretary Steven Mnuchin both press the case for GOP tax legislation as economic relief for the middle-class without substantial t

+See More

Climate change and ESG woke capitalism

Dan Rochefort

2022-11-30 09:26:00 Wednesday ET

Climate change and ESG woke capitalism

Climate change and ESG woke capitalism In recent times, the Biden administration has signed into law a $375 billion program to better balance the economi

+See More

The Economist delves into the modern perils of tech titans such as Apple, Amazon, Facebook, and Google.

Jacob Miramar

2018-01-12 07:37:00 Friday ET

The Economist delves into the modern perils of tech titans such as Apple, Amazon, Facebook, and Google.

The Economist delves into the modern perils of tech titans such as Apple, Amazon, Facebook, and Google. These key tech titans often receive plaudits for mak

+See More

Facebook introduces a new cryptocurrency Libra as a fresh medium of exchange for e-commerce.

Dan Rochefort

2019-07-21 09:37:00 Sunday ET

Facebook introduces a new cryptocurrency Libra as a fresh medium of exchange for e-commerce.

Facebook introduces a new cryptocurrency Libra as a fresh medium of exchange for e-commerce. Libra will be available to all the 2 billion active users on Fa

+See More

The Phillips curve becomes the Phillips cloud with no inexorable trade-off between inflation and unemployment.

Fiona Sydney

2019-08-02 17:39:00 Friday ET

The Phillips curve becomes the Phillips cloud with no inexorable trade-off between inflation and unemployment.

The Phillips curve becomes the Phillips cloud with no inexorable trade-off between inflation and unemployment. Stanford finance professor John Cochrane disa

+See More

Federal Reserve normalizes the current interest rate hike to signal its own independence from the White House.

Apple Boston

2019-01-08 17:46:00 Tuesday ET

Federal Reserve normalizes the current interest rate hike to signal its own independence from the White House.

President Trump forces the Federal Reserve to normalize the current interest rate hike to signal its own monetary policy independence from the White House.

+See More