Former Federal Reserve Chairman Alan Greenspan said the recent rise in Treasury yields represents a “canary in the mine” that may signal further gains in interest rates.
Higher yields reflect investor concerns over “this huge overhang of federal debt which we have never seen before,” Greenspan said in an interview today on Bloomberg Television’s “Political Capital With Al Hunt.”
The problem is that he still hasn't owned up to his contribution to the federal government's insolvency. His endorsement of Bush II's tax cuts and his own low interest rate policy made debt issuance into a mad scramble to see who among governments, banks, hedge funds, and homeowners could lever up the fastest. Anyone who played that game turned out to be a big loser.
Come on, Alan. Think of how history will view you. The least you can do now is admit that the U.S. government won't be able to pay its future bills because you allowed it to run up its credit card.
