And whatever their publicized angst over Saddam Hussein’s ‘weapons of mass destruction.
ALAN GREENSPANAny onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher asset prices.
More Alan Greenspan Quotes
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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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How do we know when irrational exuberance has unduly escalated asset values?
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If we are to remain preeminent in transforming knowledge into economic value, America’s system of higher education must remain the world’s leader in generating scientific and technological breakthrough, and in meeting the challenge to educate workers.
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While local economies may experience significant price imbalances, a national severe price distortion seems most unlikely in the United States, given its size and diversity.
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All taxes are a drag on economic growth. It’s only a question of degree.
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Fiat money in extremis is accepted by nobody. Gold is always accepted.
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Political decisions are never random and will always lose out to innovative alternatives.
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Revolutions are something you see only in retrospect.
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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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The only sustainable way to increase demand for vacant houses is to spur the formation of new households. Admitting more skilled immigrants, who tend to earn enough to buy homes, would accomplish that while paying other dividends to the U.S. economy.
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Anyone willing to do what is required to become president of the United States is thereby barred from taking that office. I’m only half joking
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Excessive optimism shows the seeds of its own reversal in the form of imbalances that tend to grow over time.
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I came to a stark realization: chronic surpluses could be almost as destabilizing as chronic deficits.
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I believe that the general growth in large [financial] institutions have occurred in the context of an underlying structure of markets in which many of the larger risks are dramatically — I should say, fully — hedged.
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It keeps interest rates lower than they otherwise would be and frees savings to finance increases in the capital stock, thereby boosting productivity and real incomes.
ALAN GREENSPAN