Alan Greenspan: 'Nervous' Bond Prices Are Too High

The transcript discusses the potential equity bubbles in history and draws parallels with current bond market speculation. It explores the implications of stagflation on interest rates and financial stability, highlighting the historical constancy of human time preference. Concerns over the bond market's stability are raised, particularly with negative term premiums. The discussion extends to negative interest rates and currency implications, emphasizing the limits of arbitrage. Finally, the transcript addresses currency volatility and its impact on the global economy, pointing to significant uncertainty and political challenges in addressing entitlements.

How does currency fluctuation impact the global economy?

What factors contribute to the uncertainty in the global economy?

What are the potential consequences of a significant entitlements problem in the United States?