Greenspan Is Off His Meds Again

August 19, 2015
Greenspan warns about bond-market bubble

Greenspan said “normal” interest rates have always been in the 4% to 5% range.

Always?

As seen here, from January of 1934 to July of 2015, the 3-month treasury bill interest rate has been between 4% and 5% only 111 months out of 979 months, or just 11.3% of the time.

Stick that in your "normal" pipe and smoke it.

“There are two possibilities. Either we move slowly back to normal, or we do it in a fairly aggressive manner. History tells us it’s the latter which tends to be more prevalent than the former,” Greenspan said.

Japanese investors might offer a third possibility, especially those who began investing in the early 1990s shortly after their housing bubble popped. Just sayin'.