Revolutions are something you see only in retrospect.
ALAN GREENSPANThe arts develop skills and habits of mind that are important for workers in the new economy of ideas.
More Alan Greenspan Quotes
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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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The need for values is inbred. Their content is not.
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The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War.
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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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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 do not deny that many appear to have succeeded in a material way by cutting corners and by manipulating associates, both in their professional and in their personal lives.
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And whatever their publicized angst over Saddam Hussein’s ‘weapons of mass destruction.
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Fear and euphoria are dominant forces, and fear is many multiples the size of euphoria. Bubbles go up very slowly as euphoria builds.
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It is regrettably the way human nature functions, whether we like it or not. What successful economies do is keep it to a minimum.
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Credit-default swaps, I think, have serious problems associated with them.
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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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People dont realize that we cannot forecast the future. What we can do is have probabilities of what causes what, but thats as far as we go. And Ive had a very successful career as a forecaster, starting in 1948 forward.
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The worst have failed; investors no longer fund them and are not likely to in the future.
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The recent period has been marked by a transformation to an economy that is more productive as competitive forces become increasingly intense and new technologies raise the efficiency of our businesses…
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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.
ALAN GREENSPAN