Now that's gotta be good for the economy.....
But my hunch is that Greenspan WILL raise rates next time the Fed meets. This notion that he can stop rate hikes now will trash bonds and cause gold and oil to soar.
The US and global economies are still very distorted by the 1% solution that Greenspan started in 2000 to "save the bubble."
Well, he may have saved the bubble after all...but $3 gas will be here to stay if some normalcy is not restored.
A more likely scenario will be a drift down in bonds, and hence up in rates, caused by the massive deficit spending Katrina will cause. And oil prices could start upward again next week now that the post-disaster euphoria rally on Wall Street is done.
Wall Street sees no evil these days...it's all happy face, all the time. Greenspan has never succeeded to disabusing The Street of it's Bubble Fantasies. Wall Street still sees a free lunch around every corner.
The mood could seriously change next week...these "happy disasters" are just too 1990's to be real!
