But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?
ALAN GREENSPANAll taxes are a drag on economic growth. It’s only a question of degree.
More Alan Greenspan Quotes
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I didn’t believe in absolutes, moral or otherwise. If I couldn’t prove a proposition with facts and figures, it was without merit.
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Deficit spending is simply a scheme for the confiscation of wealth.If I seem unduly clear to you, you must have misunderstood what I said.
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Regulators have not been able to achieve the level of future clarity required to act pre-emptively.
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Rules cannot take the place of character.
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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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While these tendencies were no doubt in train in the “old,” pre-1990s economy, they accelerated over the past decade as a number of technologies with their roots in the cumulative innovations of the past half-century began to yield dramatic economic returns.
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The number of mistakes I have made are just awesome. There is no number large enough to account for that.
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I have one other issue I’d like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here.
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I’m a better economist than I was a sax player.
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The guiding purpose of the government regulator is to prevent rather than to create something.
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I think that real pressure is going to occur not by the initiation by the Federal Reserve, but by the markets themselves.
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Significantly opening up immigration to skilled workers solves two problems.
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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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Recent episodes in which Fed officials hinted at a shift toward higher interest rates have unleashed significant volatility in markets.
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The economy is turning, and credit comes in with a lag, .. To the extent that a number of small firms are finding it difficult to get the credit they need at a price they can afford, that’s likely to change for the better.
ALAN GREENSPAN