Bond market bubble forming, ex-Fed chief Alan Greenspan warns

Alan Greenspan, Fed chairman between 1987 and 2006, told Bloomberg: "I think we have a pending bond market bubble. "If we merely substitute the structure of equity prices, and we have the price of bonds, and instead of expected equity return we have expected interest rate return, that price earnings ratio is in an extraordinary unstable position." Greenspan is no stranger to controversy. He has been criticised for fuelling the US housing bubble by keeping rates down in the early 2000s and failing to keep a closer eye on banks, the Telegraph reports. Now he said behavioural economic...