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IDS World Markets Thurs 17th February 05


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Greenspan comments on Social Security please Bush - UPDATE 1

 

WASHINGTON (AFX) - President Bush on Thursday said Federal Reserve Chairman Alan Greenspan's cautious endorsement of the White House's call to add private investment accounts to Social Security showed that the central banker recognized the entitlement program's long-term financing woes. Greenspan "understands we have about $11 trillion of debt owed to future generations" and that policymakers "better do something about it now," Bush said at a White House news conference.

 

Greenspan on Wednesday backed the concept of private accounts, but urged a cautious approach to the transition, saying it was unclear how financial markets would react to trillions of dollars in required borrowing. "If you are going to move to private accounts, which I approve of, I think you have to do it in a cautious and gradual way," Greenspan said, in testimony before the Senate Banking Committee.

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