Comments by:
Alan Greenspan
Former Chairman of the Board of Governors
Federal Reserve System
Washington, DC

On Friday, May 19, Former Fed chief Alan Greenspan spokebefore a crowd of Manhattan commercial real estate executives at CBRichard Ellis' annual Forecast Breakfast. After initial remarksthat centered largely on the challenges of oil supply and demand,Greenspan settled down for a one-on-one interview moderated byBoston Properties chairman Mort Zuckerman. Zuckerman askedGreenspan a range of questions, dealing with issues ranging fromthe housing bubble to interest rates. But the question that heldthe most intrigue focused on the macro-economic picture and thedangers that lie ahead. Following are excerpts from Greenspan'sthoughts on the question as well as some reflections on the housingbubble:

"Our major problems are not economic but political. On Medicarewe have already severely over-committed to the next generation.Congress can make promises, but few people are estimating properlyconcerning the needs of retirees and the existing workforce in thegeneration after the baby boomers. We will have to have doctors,nurses, hospitals and an array of medical services. But supplied bywhom?