Greenspan: Must Remove Uncertainty on Long-Term Rates

The video discusses the yield curve, focusing on Morgan Stanley's prediction of a 1% 10-year yield and its implications for capital spending. It highlights the economic sluggishness in the U.S. and globally, noting the widening spread between the 30-year Treasury bond and the 5-year note. This spread influences investment in capital assets, favoring those with shorter life expectancies. The video suggests that fiscal stimulus and reducing uncertainty, such as future corporate tax rates, could address these issues, as long-term investments are heavily discounted in the current environment.

What is the significance of the yield curve flattening in relation to capital spending decisions for CEOs?

How does the spread between the 30-year U.S. Treasury bond yield and the five-year note affect investment in long-term assets?

What role does fiscal stimulus play in addressing the sluggishness of the American economy?

In what ways does uncertainty regarding future corporate tax rates impact long-term investments?

What trends are observed in capital expenditure (CapEx) following the 2008-2009 recession?