The Emperor Has No Clothes

Here's a disturbing thought: Could Greenspan finally have lost his preternatural ability to control the economy?
Michael Mandel

Alan Greenspan and his Fed friends have raised short-term interest rates 8 times over the past year. Yet the best efforts of the "second most powerful man in Washington" seem to have come to naught, as long-term rates, including mortgage rates, have actually fallen over that stretch.

The Fed's inability to push up long rates has been variously blamed on a global savings glut, lack of growth in Europe and Japan, and exposure to kryptonite (oh oh, scratch that last one).

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