Key Words: Alan Greenspan says there are two bubbles, in stocks and bonds

Alan Greenspan, who warned of “irrational exuberance” during the dot-com bubble of the 1990s, said Wednesday that Wall Street is in another bubble. Two, in fact.

“There are two bubbles: We have a stock market bubble, and we have a bond market bubble.”

Alan Greenspan

“At the end of the day, the bond market bubble will eventually be the critical issue,” the former Fed chairman said in an interview with Bloomberg TV.

“For the short term it’s not too bad,” Greenspan said. “But we’re working, obviously, toward a major increase in long-term interest rates, and that has a very important impact, as you know, on the whole structure of the economy.

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