We are in the midst of a once-in-a-century credit tsunami. Central banks and governments are being required to take unprecedented measures.
ALAN GREENSPANThey seem to sense… that gold and economic freedom are inseparable.
More Alan Greenspan Quotes
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We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power.
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It is regrettably the way human nature functions, whether we like it or not. What successful economies do is keep it to a minimum.
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Since I’ve become a central banker, I’ve learned to mumble with great incoherence.
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Fear and euphoria are dominant forces, and fear is many multiples the size of euphoria. Bubbles go up very slowly as euphoria builds.
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History demonstrates that participants in financial markets are susceptible to waves of optimism.
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And whatever their publicized angst over Saddam Hussein’s ‘weapons of mass destruction.
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We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability.
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All taxes are a drag on economic growth. It’s only a question of degree.
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This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums.
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Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity are in a state of shocked disbelief.
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If we are dealing with psychology, then the thermometers one uses to measure it have an effect.
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Improvements in lending practices driven by information technology have enabled lenders to reach out to households with previously unrecognized borrowing capacities.
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I don’t think it’s possible for the Fed to end its easy-money policies in a trouble-free manner.
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If we are to remain preeminent in transforming knowledge into economic value, America’s system of higher education must remain the world’s leader in generating scientific and technological breakthrough, and in meeting the challenge to educate workers.
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We may be in a rapidly evolving international financial system with all the bells and whistles of the so-called new economy. But the old-economy rules of prudence are as formidable as ever. We violate them at our own peril.
ALAN GREENSPAN