The guiding purpose of the government regulator is to prevent rather than to create something.
ALAN GREENSPANNor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.
More Alan Greenspan Quotes
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The tub helps me relax, and it’s a great place to read.
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If we allow terrorism to undermine our freedom of action, we could reverse at least part of the palpable gains achieved by postwar globalization. It is incumbent upon us not to allow that to happen.
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The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning the greater resilience of our largest financial institutions…
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To succeed, you will soon learn, as I did, the importance of a solid foundation in the basics of education – literacy, both verbal and numerical, and communication skills.
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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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The worst have failed; investors no longer fund them and are not likely to in the future.
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We need, in effect, to make the phantom ‘lock-boxes’ around the trust fund real.
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The more flexible an economy, the greater its ability to self-correct in response to inevitable, often unanticipated, disturbances and thus to contain the size and consequences of cyclical imbalances.
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We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past.
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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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What an ideology is is a conceptual framework with the way people deal with reality.
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Any informed borrower is simply less vulnerable to fraud and abuse.
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The very nature of finance is that it cannot be profitable unless it is significantly leveraged… and as long as there is debt, there can be failure and contagion.
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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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In the process we have created [a] privileged elite whose incomes are being supported at non-competitively high levels by immigration quotas on skilled professionals.
ALAN GREENSPAN






