Feb 1, 2018

Alan Greenspan on bubbles in stocks and bonds

I think there are two bubbles.  We have a stock market bubble and we have a bond market bubble.  I think in the end of the day the bond market bubble will be the critical issue.  But for the short-term it's not too bad, but we're working obviously towards a major increase in long-term interest rates and that has a very important impact... on the whole structure of the economy.

~ Alan Greenspan, interview on Bloomberg TV, January 31, 2018

(He blamed the bond bubble on fiscal deficits.  No mention of the role of central banks.)

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