Alan Greenspan has said theres is a bubble in bond prices, not stock prices, and that this is not discounted in the marketplace. This column contests his conclusion.
In a course I had just finished teaching at the Singapore Management University, I told the students that bonds could never be in a bubble and only stocks could and are. On 1 August, according to a Bloomberg story, Alan Greenspan said, “We are experiencing a bubble, not in stock prices but in bond prices. This is not discounted in the marketplace." This column contests his conclusion.