…our market system depends critically on trust-trust in the word of our colleagues and trust in the word of those with whom we do business.
ALAN GREENSPANWe can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past.
More Alan Greenspan Quotes
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[Republicans] swapped principle for power. They ended up with neither. They deserved to lose.
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In an economy that already has lost some momentum, one must remain alert to the possibility that greater caution and weakening asset values in financial markets could signal or precipitate an excessive softening in household and business spending.
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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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What an ideology is is a conceptual framework with the way people deal with reality.
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Gold still represents the ultimate form of payment in the world.
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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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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?
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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.
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Without calling the overall national issue a bubble, it’s pretty clear that it’s an unsustainable underlying pattern.
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Excessive optimism sows the seeds of its own reversal.
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An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions.
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Developing protectionism regarding trade and our reluctance to place fiscal policy on a more sustainable path are threatening what may well be our most valued policy asset.
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Credit-default swaps, I think, have serious problems associated with them.
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Such 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.
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Any informed borrower is simply less vulnerable to fraud and abuse.
ALAN GREENSPAN