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2/1/2018 Alan Greenspan says there are bubbles in both stocks and bonds

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US EU ASIA OIL BONDS GOLD

Alan Greenspan says there are


bubbles in both stocks and
bonds
"I think there are two bubbles. We have a stock market bubble and we have a
bond market bubble," Greenspan says Wednesday on Bloomberg Television.
He predicts a rise in inflation and interest rates.

Tae Kim | @firstadopter


Published 14 Hours Ago | Updated 14 Hours Ago

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If the market's drop   
Alan Greenspan gave a stark warning about the financial markets turns into a

Wednesday. correction, history
says hide out in gold,
"I think there are two bubbles. We have a stock market bubble and we bonds
have a bond market bubble," Greenspan said in an interview on Stocks are doing
Bloomberg Television. "I think [at] the end of the day the bond market something they
bubble will eventually be the critical issue." haven’t done in more
than 60 years
The former Federal Reserve chairman predicted a rise in interest rates Promoted Links
and fretted over the national debt and budget deficit.
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"We are dealing with a fiscally unstable long-term outlook in which The number of
inflation will take hold," he added. "In fact I was very much surprised 1. people using
that in the State of the Union message yesterday all those new Facebook daily in
initiatives were not funded and I think we're getting to the point now North America
where the breakout is going to be on the inflation upside. The only dropped for the first
question is when." time

Greenspan noted how productivity levels have not risen much in the PayPal shares plunge
past 10 years. He also cited the recent drop in the value of the U.S.
2. after eBay splits with
dollar versus other currencies. payment provider in
favor of Adyen
"We are working our way towards stagflation," he said.

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Greenspan is widely known for the "irrational exuberance" speech he
gave at the American Enterprise Institute in 1996. The address warned
3. Company sells all of
about asset price levels, but came well before the stock market topped its flamethrowers in
out in 2000. less than a week

Tae Kim Bitcoin headed for


Investing Journalist
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2/1/2018 Alan Greenspan says there are bubbles in both stocks and bonds
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