BC-Greenspan-Summary Box,0106

Summary Box: Greenspan cautions on trade deficits

With BC-Greenspan, Bjt

By The Associated Press

THE WARNING: Federal Reserve Chairman Alan Greenspan cautioned that swollen trade deficits eventually could threaten the economy by souring foreign appetites for investment in the United States.

THE RESPONSE: His remarks sent stocks down on Wall Street. The dollar, already sliding, fell further.

THE THREAT: If foreigners unload investments in the United States, that could send stock and bond prices plunging and interest rates soaring.

AP-ES-11-19-04 1803EST

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