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Learning to Love Low Interest Rates

By Rich Miller

Back in February, when he first addressed the issue of stubbornly low bond yields, Federal Reserve Chairman Alan Greenspan called it a "conundrum." The mystery revolved around a simple question: Why were long-term interest rates falling even as the central bank was jacking up short-term rates? Back then, Greenspan ventured that the anomaly could be a temporary aberration and that in no time, bond yields might start acting in more traditional ways.

The Aging of Abercrombie & Fitch
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