Credit-default swaps, I think, have serious problems associated with them.
ALAN GREENSPANSuch caution seems especially warranted with regard to the sharp rise in equity prices during the past two years. These gains have obviously raised questions of sustainability.
More Alan Greenspan Quotes
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What we have found over the years in the marketplace is that derivatives have been an extraordinarily useful vehicle to transfer risk from those who shouldn’t be taking it to those who are willing to and are capable of doing so.
ALAN GREENSPAN -
The worst have failed; investors no longer fund them and are not likely to in the future.
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The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War.
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I have found no greater satisfaction than achieving success through honest dealing and strict adherence to the view that, for you to gain, those you deal with should gain as well.
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Market financed withdrawals of home equity in recent years.
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In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.
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If prices go down, we will have problems – problems in the sense of spillover to other areas.
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Regulation of derivatives transactions that are privately negotiated by professionals is unnecessary.
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If we were to do that we would increase the supply of skilled workers that our schools have been unable to create and as a consequence of that we would lower the average wage of skills and reduce the degree of income inequality in this country.
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The recent period has been marked by a transformation to an economy that is more productive as competitive forces become increasingly intense and new technologies raise the efficiency of our businesses…
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I’m a plain soap kind of guy.
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They seem to sense… that gold and economic freedom are inseparable.
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Yet deregulation set the stage for an enormous wave of creative destruction in the 1980s.
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By far the most significant event in finance during the past decade has been the extraordinary development and expansion of financial derivatives.
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Anyone willing to do what is required to become president of the United States is thereby barred from taking that office. I’m only half joking
ALAN GREENSPAN






