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Alan Greenspan says there are bubbles in both stocks and bonds
Alan Greenspan gave a stark warning about the financial markets Wednesday. "I think there are two bubbles. We have a stock market bubble and we have a bond market bubble," Greenspan said in an interview on Bloomberg Television. "I think [at] the end of the day the bond market bubble will eventually be the critical issue." The former Federal Reserve chairman predicted a rise in interest rates and fretted over the national debt and budget deficit. "We are dealing with a fiscally unstable long-term outlook in which inflation will take hold," he added. "In fact I was very much surprised that in the State of the Union ... (full story)