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11/19/2002

Economy Update: Greenspan Says Its Growing
Federal Reserve Chairman Alan Greenspan says the economy is growing.

Greenspan said Tuesday that financial innovations have helped the United States and the world absorb various shocks from the loss of $8 trillion of wealth in the U.S. stock market to the terrorist attacks and a number of high-profile corporate bankruptcies. Greenspan cautioned governments to resist the temptation to over-regulate financial markets, saying new types of financial instruments have been a major reason the United States and the global economy have withstood the shocks of the past 2.5-years. "Despite the draining impact of a loss of $8 trillion of stock market wealth, a sharp contraction in capital investment and, of course, the tragic events of Sept. 11, 2001, our economy is still growing," Greenspan said in a speech to the Council on Foreign Relations.