Daily Archives: March 19, 2010

GREENSPAN’S BUBBLE REVIEW DU JOUR

“All bubbles burst when risk aversion reaches its irreducible minimum,” former Fed chairman Alan Greenspan writes in a new paper—“The Crisis”—for the Brookings Institution. That minimum, he advises, arrives with “credit spreads approaching zero, though analysts’ ability to time the onset of deflation has proved illusive.”

Continue reading