This is what Greenspan is really worried about …

Calling it a “very unusual issue,” former Fed Chairman Alan Greenspan told CNBC on Friday he’s worried about the spread between 30-year and 5-year Treasury notes.

“That is the measure of the degree of long-term, very long-term, lack of confidence. And that spread is at the widest level in American history,” Greenspan said in a “Squawk Box” interview.

He said he’s also concerned about “the so-called cyclically adjusted deficit, which is draining private savings, and in fact is a major problem.”

While that deficit issue and spread in Treasurys are holding back the stock market, Greenspan said, “stocks in the long-term sense are still undervalued by any objective measure.”

“Let’s remember,” he added, “over the long-term, there’s been a remarkable, stable growth rate in the stock market. It’s close to 7 percent a year.”

By CNBC’s Matthew J. Belvedere. Follow him on Twitter @Matt_SquawkCNBC.

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