'excess'?

[Marshac]

The Fed chairman said bond yields might be low due to a larger share of world savings being deployed across borders, low inflation, or weak credit demand, or ``excess.'' A basis point is 0.01 percentage point.

``History cautions that people experiencing long periods of relative stability are prone to excess,'' Greenspan said. ``We must thus remain vigilant against complacency.''

What is 'excess'

 

[haha]

What is 'excess'

Irrational exuberance?

Mikey

 

[brewer12345]

I think he is likely referring to complacency and a tendency to believe that risk has pretty much disappeared. If you look at a wide variety of asset classes (everything from treasuries to junk bonds to equities), prices seem to suggest that it will be nothing but smooth sailing for years to come. The chairman is suggesting that this is perhaps not the wisest thing.