No registration required! (Why?)

Greenspan and Lehman Brothers

Greenspan, who retired from the Fed 10 days ago, roiled markets Wednesday after offering an upbeat assessment of the U.S. economy at a private dinner Tuesday night for clients of Lehman Brothers.

Although neither Greenspan nor Lehman Brothers issued a report on his appearance, Lehman's traders burned the wires Wednesday morning with accounts of their exclusive access to the maestro.

"It attracted quite a lot of attention," said Anthony Karydakis, chief U.S. economist for JPMorgan Asset Management in New York. "We had the guys from Lehman calling us to give us an update as to what he said."

Although Greenspan no longer sets Fed policy, he will be a one-man shadow Federal Reserve for a while. He is unlikely to recuse himself from paid appearances to discuss economic trends and interest rates.
Dollar Advances as Greenspan Suggests Rates May Rise Further
Feb. 8 (Bloomberg) -- The dollar advanced to a one-month high against the euro and rose versus the yen as former Federal Reserve Chairman Alan Greenspan bolstered speculation the central bank will continue raising interest rates.

Greenspan suggested at a dinner yesterday that low long-term rates were limiting the Fed's ability to manage the economy, according to a person briefed by a participant at the meeting. The U.S. currency's gains accelerated on the report, helping the dollar post its biggest advance in a week against the yen.

``Apparently he spoke very hawkishly and suggested the market isn't pricing in as much as they should as far as future interest-rate hikes,'' said John Cholakis, a currency trader at Natexis Banques Populaires in New York. ``That's been one of the reasons why the dollar is so bid,'' or in demand, today, he said.

The dollar strengthened to $1.1964 per euro at 5 p.m. in New York, from $1.1981 yesterday, reaching the strongest since Jan. 3. It rose to 118.49 yen, from 117.95 yen yesterday.

Greenspan made his comments to about a dozen clients of Lehman Brothers Holdings Inc. in New York, according to the person, who declined to be identified. Kerri Cohen, a spokesman for Lehman in New York, declined to comment. Greenspan's office in Washington also declined to comment.
Heh, vintage stuff right here ... boy, how things have changed!
Is "the Fed" is any better than Bernie Madoff?