When it crossed the wire services yesterday I checked the calender wondering how I'd lost a day. The headline was:

"Alan Greenspan says he would start a bank if he were 60 years younger"

Yet it wasn't a joke (apparently). This from the Wall Street Journal today:

"Mr. Greenspan joked that if he were "60 years younger" he would start a small bank, given the "very wide" spread between rates on good loans and the cost of capital...For a bank, that's like "shooting fish in a barrel," Mr. Greenspan said." (link)

Mr Greenspan is a man who knows a thing or two about negative real interest rates and the cost of capital. But somewhat less about "good loans". His borrowers would love him; his shareholders would be wise to check the collateral.


NB: Painting by Geoffrey Raymond. Check out his blog here.