It signals problems with respect to currency markets. Central banks should pay attention to it.
ALAN GREENSPANDerivatives have permitted the unbundling of financial risks.
More Alan Greenspan Quotes
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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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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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[Republicans] swapped principle for power. They ended up with neither. They deserved to lose.
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Excessive optimism sows the seeds of its own reversal.
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Any 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.
ALAN GREENSPAN -
The probability of ten consecutive heads is 0.1 percent; thus, when you have millions of coin tossers, or investors, in the end there will be thousands of very successful practitioners of coin tossing, or stock picking.
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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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These days, even out of office, I still read economic reports.
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I’m a plain soap kind of guy.
ALAN GREENSPAN -
Political decisions are never random and will always lose out to innovative alternatives.
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Indeed, better risk management may be the only truly necessary element of success in banking.
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American and British authorities were also concerned about violence in an area that harbors a resource indispensable for the functioning of the word economy.
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If we are dealing with psychology, then the thermometers one uses to measure it have an effect.
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It is this superlatively moral system that the welfare statists propose to improve upon by means of preventative law, snooping bureaucrats, and the chronic goad of fear.
ALAN GREENSPAN -
Even though some down payments are borrowed, it would take a large, and historically most unusual, fall in home prices to wipe out a significant part of home equity.
ALAN GREENSPAN