Marketing Commentary- Q2 2005
What’s Been Happening? Alan Greenspan describes the flattening yield curve as a conundrum, and he is about as close to the issue as can be. The surprise for Greenspan and Co. is that as they have raised short-term interest rates nine times in recent years, longer-term rates have fallen. Ten-year treasuries now yield about 4%, whereas overnight loan rates to banks are 3.25%. That very small difference between short and long-term rates historically indicates a slowing economy, yet profits are improving, home prices keep rising and you hardly hear about unemployment rates any more. Winners this...
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