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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: KLP who wrote (507097)	9/9/2012 1:02:34 AM
From: Sr K	1 Recommendation Respond to of 793964

The answer is supposedly that you don't know you're in a bubble. That's what Greenspan said in 12/1996 when he asked ~ How will we know when we've reached a period of irrational exuberance? A conservative policy would have limited mortgages to 20-year terms. But investors wanted 30 years. The Treasury started to sell 30 year bonds. Etc. Greenspan, 12/5/1996: But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade? federalreserve.gov Note, "our annual $2 billion budget".