The stock market rally over the past few days has been encouraging and represent real profits, former Federal Reserve chairman Alan Greenspan told CNBC Thursday.
“A lot of people think of stock-market gains as paper profits. I think that’s the wrong slant,” said Greenspan.
Greenspan was interviewed live while attending the Aspen Institute Ideas Festival 2010in Colorado, which is an event that draws leaders in the fields of business, science, the arts and politics. It concludes on Sunday.
“Stock prices tend to move with the economy, with some lead,” he added.