Greenwich Capital Weekly Market Perspective
600 Steamboat Rd., Greenwich, Conn. 06803
FEBRUARY 20 -- Fed Chairman Alan Greenspan, as he often does, said
something for everyone last week. He was cheerleading the notion that things
didn't worsen in January, and that the productivity trend would support the
economy. This helped fuel the correction of leveraged positions. But for bond
bulls, those of us who suspect that the Chairman isn't publicly letting on to his
deepest worries, "downside risks predominate." Clearly a lot hinges on business
and consumer confidence, both of which continue to fall and aren't helped by a
weakness in equities, the tightening of credit and the nastiness in the business
cycle. What's the cure? Surely, the Fed continues to move the fed-funds rate
lower, but maybe what's needed is more time and more pain.
-- Peter D. McTeague
HO HO HO!
Tom |
