It's quite a major response to such a modest speech. Chairman Greenspan is running a bit scared. Chairman Greenspan still believes a soft landing is the most likely scenario. Paul Kasriel, head of economic research at Northern Trust Corp. in Chicago, generally agreed with Sohn. It depends whether additional weakness develops, Kasriel said.
Corporations now have the highest amount of debt relative to assets in the post-World War II period.
I don't know how they are going to maintain capital spending and stock buyback programs. Such concerns about the economy only bolstered the view that Greenspan intended to signal he would not sit by and let the economy sink into a recession. Greenspan has been hailed by many for his performance in guiding the economy since he took office in 1987. In general, Wyss said, Greenspan has been aggressive in his economic management, moving pre-emptively to control rising prices or prevent a financial disruption. He is often obscure in his public remarks, causing markets to hang on his every word for meaning.