Wall Street Journal, Feb 26 07:
"Former U.S. Federal Reserve Chairman Alan Greenspan said Monday 'The American
budget deficit is clearly a very significant concern for all of us that are trying to evaluate both the American economy's immediate future and that of the rest of the world,' and warned the American economy might slip into
recession by the end of the year.
"'We have extraordinarily low risk premiums now.
Risk is no longer perceived as major risk, at least as it was in years past and that, I must say, I find disturbing,' he said. 'We do not and cannot look into history without being very concerned when you see the absence of awareness and concern about risk that we see today.'"
Note: "Risk" = low yields on corporate junk bonds, overpriced stock market (historic highs in P/E ratios), subprime mortgages (undercapitalized lenders and borrowers), derivatives trading, etc., etc., the list is long.