Senator, if I seem clear to you, you must have misunderstood me’.
ALAN GREENSPANAlthough the outlook is clouded by a number of uncertainties, the central tendencies of the projections .. imply continued good economic performance in the United States.
More Alan Greenspan Quotes
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Enhances a person’s ability to handle the more ambiguous and qualitative relationships that dominate our day-to-day financial decision-making
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Given our inevitably incomplete knowledge about key structural aspects of our ever-changing economy and the sometimes asymmetric costs or benefits of particular outcomes, a central bank.
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When trust is lost, a nation’s ability to transact business is palpably undermined.
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If I say something which you understand fully in this regard, I probably made a mistake.
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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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We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power.
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The problem is not lack of regulation but unrealistic expectations. What we confront in reality is uncertainty, some of it frighteningly so…
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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.
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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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The need for values is inbred. Their content is not.
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It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating.
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But material success is possible in this world and far more satisfying when it comes without exploiting others.
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Cash is available and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this.
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Rules cannot take the place of character.
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Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.
ALAN GREENSPAN