Wednesday, June 05, 2002

All A-Board!. Get the scoop on everything from REITs to debt to ROIC to Pfizer on our discussion boards. [The Motley Fool] 12:53:48 PM

WSJ.  Greenspan gives no indication that he is going to raise rates.  Greenspan is in a bind.  Most of corporate America has opted to refinance long-term debt in short-term notes.   This has allowed them to take advantage of extremely low short term rates and boost profits.  If Greenspan raises rates, he would crush any recovery in the profitability of US companies and stomp on the stock market.  He also expressed a recognition of the dynamics of The New Economy II:  >>>Asked to reconcile the relative optimism of economists with the lingering pessimism of business executives, the Fed chief attributed the disparity in part to the continuing profit squeeze, even amid improving economic growth, because of the difficulty companies face raising prices. "The pricing power of business has been materially reduced," Mr. Greenspan said.<<< [John Robb's Radio Weblog] 8:00:43 AM