Institutions of the newer participants in global finance had not been tested, until recently…recent crisis have underscored certain financial structure vulnerabilities that are not readily assuaged in the short run.
ALAN GREENSPANProtectionism will do little to create jobs and if foreigners retaliate, we will surely lose jobs.
More Alan Greenspan Quotes
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It has been my experience that competency in mathematics, both in numerical manipulations and in understanding its conceptual foundations.
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Productivity is notoriously difficult to predict.
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If I say something which you understand fully in this regard, I probably made a mistake.
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Derivatives have permitted the unbundling of financial risks.
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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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The arts develop skills and habits of mind that are important for workers in the new economy of ideas.
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The need for values is inbred. Their content is not.
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Yet deregulation set the stage for an enormous wave of creative destruction in the 1980s.
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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.
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Given our inevitably incomplete knowledge about key structural aspects of our ever-changing economy and the sometimes asymmetric costs or benefits of particular outcomes, a central bank.
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So there is no reason to suspect that the actual process of boosting rates would be any different.
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Regulation – which is based on force and fear – undermines the moral base of business dealings. It becomes cheaper to bribe a building inspector than to meet his standards of construction. Protection of the consumer by regulation is thus illusory.
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The process of innovation is, of course, never ending.
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A decline in the national housing price level would need to be substantial to trigger a significant rise in foreclosures, because the vast majority of homeowners have built up substantial equity in their homes despite large mortgage.
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I do not deny that many appear to have succeeded in a material way by cutting corners and by manipulating associates, both in their professional and in their personal lives.
ALAN GREENSPAN