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The Downside of the Fed’s Increasingly Complicated Expectations Game

Harvard Business Review

And in fact the prices of the particular financial assets that the Fed announced that it will buy less of, Treasury bonds and mortgage-backed securities, did drop slightly on the news Wednesday. But stocks didn’t. When you view this reaction in terms of expectations, it makes a bit more sense. But I think the man is on to something.

Bond 8
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What Alan Greenspan Has Learned Since 2008

Harvard Business Review

I had an idea of constructing a certain statistical procedure. In fact I think the evidence probably is conclusive that a necessary and sufficient condition for a bubble is a prolonged period of economic stability, stable prices, and therefore low risk spreads, credit-risk spreads. Let’s do it.”.