From:
http://www.latimes.com/business/la-fi-greenspan20nov20,1,5449944.story?coll=la-headlines-business(reg required)
Quote:
BERLIN — Foreigners will eventually sour on U.S. bonds and the dollar because of America's bulging trade and budget deficits, posing significant risks to the nation's economy, Federal Reserve Chairman Alan Greenspan said Friday in remarks that rattled financial markets.
Greenspan told a banking conference in Frankfurt, Germany, that international investors were likely to either unload their dollar-denominated investments or demand higher interest rates. Either scenario would present problems for an economy that is heavily dependent on foreign capital to fuel its free-spending ways.
...
"Greenspan frightened the markets by raising the specter of a dollar panic," said Peter Morici, former director of the Office of Economics at the U.S. International Trade Commission.
Mods: The LAT article is new, though I know it is quoting Friday's comments by Greenspan
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