Greenspan's approval of debt sparks debate

WASHINGTON, March 16 (UPI) -- The top U.S. central banker is embroiled in a debate with other economists about rising personal debt, the New York Times reported Tuesday.

Alan Greenspan, chairman of the Federal Reserve Board, says rising personal debt, as well as the growing federal deficit and a yawning trade gap, are no cause for worry.

"History suggests that the odds are favorable that current imbalances will be defused with little disruption," he declared in a speech two weeks ago.

Some economists, though, particularly those in or close to the business community, disagree.

"The fear I have is that the world is leveraged on low-interest borrowing," said Allen Sinai, chief executive of Decision Economics, an economic forecasting firm.

"It's like a drug, and you get hooked on it."

Economists who side with Greenspan tend to come from academia.

"There is really nothing unusual in what he is saying, and I happen to agree with him," said Janet L. Yellin, a former Fed governor who teaches economics at the University of California at Berkeley.