Greenspan Fears Inflation
The rise in global stock prices from early March to mid-June is arguably the primary cause of the surprising positive turn in the economic environment. The $12,000bn of newly created corporate equity value has added significantly to the capital buffer that supports the debt issued by financial and non-financial companies. Corporate debt, as a consequence, has been upgraded and yields have fallen. Previously capital-strapped firms have been able to raise considerable debt and equity in recent months. Market fears of bank insolvency, particularly, have been assuaged.
Read more: http://globaleconomicnews.blogspot.com/2009/07/greenspan-fears-inflation.html
Tags: Alan Greenspan, The Federal Reserve System, Inflation, Global Economic News, Medicare, Fiscal Policy, Economics, US Economy, Bond Yields, Interest Rates, Creative Destruction, Free market forces,
