Stark contrast in responding to questions - Greenspan vs Bernanke
Questrion: Is an inverted yield curve a predictor of a future recession?
Greenspan response: “History suggests that is usually or has been a forward indicator for softening economic activity … I suspect, however, that we have changed the structure of the flow of funds and the relationships among the various interest-rate tranches by maturity such that I’m not sure what such a configuration … would mean.”
A year later
Bernanke response: “The inverted yield curve is not signaling a slowdown.”