CLINTON: MAKE NO MOVE FORCING PREMATURE STOCK BUBBLE
07:16 EDT 07/07 --Clinton Says 'Nothing Lasts Forever' --President Tells CNBC Greenspan Term Renewal Not on the Table Yet
WASHINGTON (MktNews) - President Clinton late Tuesday said his administration must avoid taking any steps that could turn the soaring U.S. stock market into a bubble "prematurely," but noted that "nothing lasts forever."
In an exclusive interview with CNBC in Memphis, Clinton was asked whether he's concerned about the high-flying equities market being a bubble set to burst.
"Well I think every person who's thoughtful, who knows that nothing lasts forever, you know, is wondering how this will all play out. I think every thoughtful person does.
"But I think what we should do is to make the most of this and to make no move which would turn it into a bubble prematurely," Clinton told CNBC's Ron Insana in a taped interview aired Tuesday evening.
Insana said Clinton also told him off-camera, when asked about appointing Fed Chairman Alan Greenspan to a third term, that he hadn't thought about it yet. Clinton said much of that decision lies with Greenspan and whether he would accept another term, according to Insana.
The president also took a shot at Republican tax cut proposals, saying they ambitious $1 trillion move would again return the country to budget deficits.
Clinton said if his more modest tax cut proposals and budget program are adopted this would "lengthen the period of this recovery. I think it would minimize the chances of a bubble."
"If, by contrast, we went out and said 'hot dog' right here before the next election and we're going to give you a $1 trillion tax cut, unfortunately our deficit will be bigger; and we won't get ourselves out of debt," Clinton said.
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