At the risk of some oversimplification, if the skill composition of our work force meshed fully with the needs of our increasingly complex capital-stock, wage-skill differentials would be stable.
ALAN GREENSPANThere’s an interesting question here because if the gold price broke in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology.
More Alan Greenspan Quotes
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Was sort of intellectually shocked. Contagion is the critical phenomenon which causes the thing to fall apart.
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History cannot be reduced to a set of statistics and probabilities.
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Yet deregulation set the stage for an enormous wave of creative destruction in the 1980s.
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In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.
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And whatever their publicized angst over Saddam Hussein’s ‘weapons of mass destruction.
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I’ve always argued that this country has benefited immensely from the fact that we draw people from all over the world.
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Regulation of derivatives transactions that are privately negotiated by professionals is unnecessary.
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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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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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If I seem unduly clear to you, you must have misunderstood what I said.
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History demonstrates that participants in financial markets are susceptible to waves of optimism.
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It is decidedly not true that “nice guys finish last,” as that highly original American baseball philosopher, Leo Durocher, was alleged to have said.
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I cannot conceive of a politically feasible solution to this problem which will overdo cutting the deficit, where overdoing means harming the economy. It might be technically possible, but it is not realistic.
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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 worst have failed; investors no longer fund them and are not likely to in the future.
ALAN GREENSPAN